The Advantages of Using a Franchising Strategy to Pursue Opportunities

question 15

Multiple Choice

The advantages of using a franchising strategy to pursue opportunities in foreign markets include

• A) having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the resources to recruit,train,and support foreign franchisees.
• B) being particularly well suited to the global expansion efforts of companies with multicountry strategies.
• C) helping build multiple profit sanctuaries.
• D) being well suited to companies that employ cross-market subsidization.
• E) being well suited to the global expansion efforts of manufacturers.

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Definitions:

Photosystem

A complex of proteins and pigments in plants and algae that absorbs light energy and converts it into chemical energy during photosynthesis.

Chlorophyll

A green pigment found in the chloroplasts of plants, algae, and some bacteria, essential for photosynthesis as it absorbs light energy to convert carbon dioxide and water into glucose.

Mitochondrion

An organelle found in large numbers in most cells, in which the biochemical processes of respiration and energy production occur. It has a double membrane, the inner layer being folded inward to form layers (cristae).

Chloroplast

Organelle of photosynthesis in plants and photosynthetic protists. Light-dependent reactions occur at its inner thylakoid membrane; light-independent reactions, in the stroma.