Which of the Following Is an Advantage of Franchising

question 17

Multiple Choice

Which of the following is an advantage of franchising?

• A) A firm takes profits out of one country to support competitive attacks in another.
• B) A firm is relieved of many of the costs and risks of opening a foreign market on its own.
• C) It guarantees consistent product quality and achieves experience curve and location economies.
• D) It improves the firm's ability to take profits out of one country to support competitive attacks in another.

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Definitions:

Negative

In the context of economics, denotes a situation or indicator that reflects a decrease, deficit, or detrimental condition.

Inelastic Supply

A situation where the quantity supplied of a good or service is not significantly influenced by changes in price.

Quantity Supplied

The total amount of a product that producers are willing and able to sell at a given price over a specified period.

Elastic

Describes a situation in economics where the quantity demanded or supplied of a good or service greatly changes in response to changes in price.