BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Franchisor lacks freedom
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Distributor is a middleman
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None of these
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Adoptive entrepreneurs are imitative
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Detailed explanation-1: -While a franchisor can be supportive and provide guidance, they do not have the right to risk everything they own to save the franchisee. They do not manage the franchisee’s business, and cannot put the system at risk as a parent would for their children.
Detailed explanation-2: -Expert Answer Ans. A) Franchising is a relatively new form of business organization is the incorrect statement. Franchising is not a new type of business organization since it is an exist…
Detailed explanation-3: -The franchisor grants the franchisee the right to operate the business under the franchise system’s trademarks and service marks and enforces the brand standards of the system. Great franchisors provide training to new franchisees and their management, and also provide support in the training of the franchisee’s staff.
Detailed explanation-4: -Which of the following is true about franchising? A franchise is an agreement whereby independant businessperson is given exclusive rights to sell a specified good or service.