BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A cooperative
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A franchise
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An owner-manager business
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A limited company
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Detailed explanation-1: -A franchise refers to a contractual arrangement whereby one party (the franchisor) allows another party (the franchisee) to use its trademarks (or tradenames) and other intellectual property, as well as certain business processes and systems.
Detailed explanation-2: -Franchising is a business relationship between two entities wherein one party allows another to sell its products and intellectual property.
Detailed explanation-3: -Examples of well-known franchise business models include McDonald’s (NYSE: MCD), Subway, United Parcel Service (NYSE: UPS), and H&R Block (NYSE: HRB). Franchise business opportunities are available across a wide variety of industries.
Detailed explanation-4: -A franchise is a legal and contractual agreement between a company (franchisor) and individuals (franchisees) to expand the business operations, benefiting both parties. The franchisor here provides individuals with the right to sell its offerings under its brand name and trademark using its business operating model.
Detailed explanation-5: -The five major types of franchises are: job franchise, product franchise, business format franchise, investment franchise and conversion franchise.