Which of the Following Is Not a Potential Disadvantage of a Franchise

question 9

Multiple Choice

Which of the following is not a potential disadvantage of a franchise?

• A)Unsatisfactory training program.
• B)Limited product line.
• C)Less freedom.
• D)All of the above are potential disadvantages of a franchise.

---

Definitions:

Stripped Common Shares

Common stock on which dividends and capital gains are repackaged and sold separately.

Dividends

Payments made by a corporation to its shareholders, usually derived from the company's profits, as a reward for investing in the company's equity.

Capital Gains

Capital Gains are the profits realized from the sale of assets such as stocks, bonds, or real estate, which exceed the purchase costs.

Stock Split

A corporate action that increases the number of shares outstanding by issuing more shares to current shareholders.