Which of the Following Is a Disadvantage of Franchising

question 28

Multiple Choice

Which of the following is a disadvantage of franchising?

• A)It restricts the franchisor from expanding.
• B)It results in the franchisor taking all the financial burden of the franchisees.
• C)It results in the delegation of authority to franchisees and thus, the franchisor may not enjoy complete control.
• D)It does not provide sufficient incentive to the franchisees to run operations effectively as the franchisees are ^{not entrepreneurs.}
• E)It requires the franchisees to create a new business model and plan strategies.

Comprehend the four leadership styles outlined in the SLII model.

Explain the rationale behind commitment regression at developmental levels 2 and 3 in SLII.

Recognize the importance of flexibility in leadership styles as emphasized in the SLII model.

Assess the effectiveness of delegating tasks in relation to subordinate’s competency and commitment.

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Definitions:

Bank Deposits and Collections

This term refers to the processes involved in placing funds into a bank account and the subsequent management and collection of those funds.

Truth in Savings Act

A federal law designed to promote the disclosure of account terms and fees in the savings accounts and certificates of deposit of banks and other financial institutions.

Depositary Banks

Financial institutions that hold and manage securities for their clients, offering services such as safekeeping, collection of dividends, and exercise of rights.

Drawee Bank

A bank upon which a check or draft is drawn and is responsible for paying the amount to the individual or entity presenting it for payment.