BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
where a business is owned by shareholders
|
|
|
where a business sells the rights to distribute its products under its name to other individuals or businesses
|
|
|
where a business sells its products to other businesses
|
|
|
where businesses merge to create one big business
|
Detailed explanation-1: -A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor’s goods or services under an existing business model and trademark.
Detailed explanation-2: -A franchise (or franchising) is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.
Detailed explanation-3: -Franchising is basically a right that manufacturers or businesses give to others. This right allows the beneficiaries to sell the products or services of these manufacturers or parent businesses. These rights could even be in terms of access to intellectual property rights.
Detailed explanation-4: -A franchisee is a business owner who is licensed to operate a branded outlet of a retail chain. The franchisee pays a fee to the franchisor for the right to sell its established products and use its trademarks and proprietary knowledge.
Detailed explanation-5: -A distribution franchise is a contract in which a franchisor gives the franchisee the right to distribute or sell a specific product on its behalf. Under this arrangement, the franchisee becomes the exclusive or semi-exclusive distributor of the franchisor’s product.