Which of the Following Is True of Franchising

question 29

Multiple Choice

Which of the following is true of franchising?

• A) It requires little financial investment by the franchisor.
• B) It is a business operation in a foreign country that a firm fully owns.
• C) It involves creating goods within a firm's home country and then shipping them to another country.
• D) It refers to a firm purchasing an existing business from a foreign operator.
• E) It is most frequently used in manufacturing industries.

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Definitions:

State and Federal Constitutions

The fundamental laws and principles that establish the structure, functions, and limits of state and federal governments in the U.S.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders; it has its own rights and liabilities.

Shareholders

Individuals or entities that own shares in a corporation, thereby having a claim on part of the corporation's assets and earnings.

Partners

Individuals or entities who engage in business together with the goal of making a profit, sharing the profits and losses according to their agreement.