A Major Advantage of Franchising for the Franchisor Is The

question 8

Multiple Choice

A major advantage of franchising for the franchisor is the:

• A) absence of state or federal regulations governing this form of business conduct.
• B) ability to gain considerable control over the distribution of its products without owning the retail outlets.
• C) enhancement of competition among the retail outlets.
• D) right to share a trade mark with the franchisee that is well known and/or highly advertised.

---

Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, usually with voting rights and potential for dividends.

Common Stock

Equity ownership in a corporation, with voting rights and eligibility to receive dividends.

Convertible Bonds

Bonds that can be converted into a predetermined number of a company's shares, typically at the discretion of the bondholder, blending debt and equity investment characteristics.

Diluted Earnings

A calculation of a company's earnings that takes into account all potential shares that could be claimed or converted into common stock, impacting the earnings per share metric.