Franchising Is a Business-Level Strategy That Allows Companies to

question 2

Multiple Choice

Franchising is a business-level strategy that allows companies to

• A) spread overhead and administrative costs over a large number of franchises.
• B) enjoy the competitive advantages of cost leadership or differentiation.
• C) hedge the costs of supplies.
• D) expand beyond their base of support.
• E) engage in new businesses that were previously beyond reach.

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Definitions:

Credit Reports

Documents compiled by credit bureaus detailing an individual's credit history, including loans, repayments, late payments, and bankruptcy records, used by lenders to assess creditworthiness.

Natural Person

A living human individual recognized by law as having rights and obligations, as opposed to a legal entity like a corporation.

Limited Partnerships

A form of partnership consisting of one or more general partners, who manage the business and are personally liable for its debts, and one or more limited partners, who contribute capital and share profits but take no part in running the business and incur no liability beyond their investment.

Good-faith Effort

An honest attempt or endeavor made in a sincere and honest effort, without intent to defraud or seek unfair advantage.