Which of the Following Is a Disadvantage of Franchising as a Mode

question 92

Multiple Choice

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

• A) The franchiser has to bear development costs and risks associated with foreign expansion.
• B) While franchising offers an ideal entry mode for manufacturing firms, it often leads to undesirable results for service firms.
• C) Poor quality standards of a foreign franchisee can cause a decline in the franchising firm's worldwide reputation.
• D) The franchiser has no incentive to sustain a long-term interest in the foreign country.
• E) Franchising often forces a franchiser to take out profits from one country to support competitive attacks in another.

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Definitions:

Ethical

Pertaining to or dealing with morals or the principles of morality; adhering to accepted standards of conduct.

Socially Responsible

Pertaining to individuals or organizations that act in ways beneficial to society, often by engaging in ethical, environmentally friendly, and community-focused activities.

Strategic Leadership

Leadership that involves setting vision, making decisions based on a broad, long-term perspective, and guiding an organization into the future.

Ethical Mind

The capability to recognize and deliberate upon moral values and principles, applying them in one’s decisions and actions.