Which of Following Is True of Franchising as a Mode

question 18

Multiple Choice

Which of following is true of franchising as a mode of entry into foreign markets?

• A) The franchiser insists that the franchisee agree to abide by strict rules as to how it does business.
• B) The franchiser incurs all costs related to starting operations in a foreign market.
• C) Franchising is employed primarily by manufacturing firms.
• D) Franchising allows firms to take profits from one country to support competitive attacks in another.
• E) A significant advantage of franchising is quality control.

---

Definitions:

Experience Level

The degree or extent of knowledge and skill that an individual has acquired through work, education, or participation in an activity.

Design Thinking

A problem-solving approach that involves empathy, creativity, and rationale to meet user needs and solve complex problems.

Divergent Thinking

A thought process that allows us to expand our view of the world to generate as many ideas as possible without being trapped by traditional problem-solving methods or predetermined constraints.

Practical Ideas

Concepts or solutions that can be implemented effectively and have potential for real-world application.