Which of the Following Is a Disadvantage of Buying a Franchise

question 16

Multiple Choice

Which of the following is a disadvantage of buying a franchise?

• A) It is more expensive than starting a new business.
• B) You give up creative control and have greater reliance on your parent company's financial status.
• C) You compete with the franchise company itself.
• D) You receive no training and management support.

---

Definitions:

Personal Computer

A compact, relatively inexpensive computer designed for individual use, primarily for tasks like browsing the web, working with software applications, and gaming.

Mainframe Computers

High-performance computing systems designed for large-scale and critical applications, known for their large size, extensive processing capabilities, and reliability.

Log-Linear Demand Function

A mathematical representation of demand where the logarithm of quantity demanded is a linear function of the logarithm of price and possibly other factors.

Market Incentives

Economic or financial incentives that influence the behavior of producers and consumers in a market, often leading to more efficient resource allocation.