Franchising Is Not an Appealing Strategy for Growth-Oriented Service Firms

question 41

True/False

Franchising is not an appealing strategy for growth-oriented service firms because franchisees tend to be less motivated and less concerned about quality than managers in company-owned stores.

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Definitions:

Categorical Variables

Variables that represent types or categories, grouping observations into distinct sets based on a characteristic such as gender or ethnicity.

Categorical Variable

A type of variable that can take on one of a limited, and usually fixed, number of possible values, assigning each individual or other unit of observation into a particular group or nominal category.

Indicator Variables

Variables used in statistical models to represent categorical data with two possible values, typically 0 or 1, indicating absence or presence of a characteristic.

Regression Model

A statistical method used to model and analyze the relationships among variables and often used to predict values of a dependent variable based on values of independent variables.