There Are Two Main Risks in Purchasing a Franchise

question 97

Multiple Choice

There are two main risks in purchasing a franchise.First,that of the franchiser's experience and business system,and second:

• A)the brand name recognition of the franchise.
• B)the entrepreneur's managerial skills and motivation.
• C)the franchiser's financing.
• D)the economy trends in the country at the time the franchisee begins operation.

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Definitions:

Behaviors

The actions or reactions of an organism, often in response to its environment.

Selfish Herd Effect

Animal groups arise from the collective tendency of individuals to reduce their risk of danger by drawing near one another.

Parental Care

The behaviors and actions of parents to support the survival, growth, and development of their offspring.

Genetic Variation

The diversity in gene frequencies within a population, arising through mutations, gene flow, and sexual reproduction, fueling evolutionary changes.