Which of the Following Is a Disadvantage for the Fast-Food

question 18

Multiple Choice

Which of the following is a disadvantage for the fast-food franchisee?

• A) ongoing management training programs
• B) short-term credit for buying supplies
• C) a peer group for support
• D) royalty fees

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Definitions:

Comparative Advantage

The capacity of an entity, whether a single person, a corporation, or a nation, to create a product or offer a service more cost-effectively in terms of foregone opportunities than its competitors.

Low Opportunity Cost

A situation where the cost of foregoing the next best alternative is relatively minimal when choosing one option over another.

Computer Software

Programs and operating information used by a computer to perform specific tasks.

Law Of Comparative Advantage

is an economic principle that states countries (or entities) gain when they produce goods and services for which they have a lower opportunity cost, leading to more efficient global production.