Which of the Following Would Be a Benefit to a Franchiser

question 143

Multiple Choice

Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing?

• A)There are no risks involved with allowing a foreign franchisee.
• B)The franchiser does not have to put up a large capital investment.
• C)The franchiser does not have to share its name or operational procedures.
• D)The franchisee only pays a set fee every month to the franchiser.
• E)An equal partnership is formed between the franchiser and franchisee.

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Definitions:

Short Run

A period in economics during which some factors of production or inputs are considered fixed.

Long Run

The long run is a period in economics where all factors of production and costs are variable, allowing companies to adjust all inputs.

Profit

The profit earned when the revenue obtained from a business operation surpasses the expenses, costs, and taxes required to maintain that operation.

Loss

A financial condition that occurs when expenses exceed revenues, implying a negative profit.