All of the Following Are Advantages of Franchising Your Business

question 30

Multiple Choice

All of the following are advantages of franchising your business, except:

• A) Since franchisees use their own capital you have no investment at the unit level so you can leverage the assets of these franchisees.
• B) Because you have a smaller investment in the overall business, your ROI should be significantly higher.
• C) Establishing franchises can enable you to grow much faster without increasing your investment or adding more employees.
• D) Franchisees are less motivated since they think everything will be controlled by the owner.

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Definitions:

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using information, including perception, memory, language, and problem-solving.

G Factor

A general intellectual ability assumed by many theorists to underlie specific mental abilities and talents.

Verbal IQ

A measure of an individual's verbal reasoning and comprehension abilities, often assessed through standardized intelligence testing.

Performance IQ

A measure of a person's ability to perform tasks that require manipulation of objects, spatial processing, and visual-motor coordination, often assessed in IQ tests.