BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Firms make their product and services in its home country to export them to foreign markets
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Foreign companies are allowed to use the company’s technology or to produce and distribute the company’s products and service
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A separate organization operates the business with the name of another company, in exchange for money
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Detailed explanation-1: -Franchising is a business marketing strategy to cover maximum market share. Franchising is a business relationship between two entities wherein one party allows another to sell its products and intellectual property. For example, several fast food chains like Dominos and McDonalds operate in India through franchising.
Detailed explanation-2: -A franchise is owned and operated by an entity, but it operates under license from the parent company. A corporation runs all of its business locations; it doesn’t bring in other companies. A franchise that’s incorporated enjoys the same legal protections as any incorporated business.
Detailed explanation-3: -Business format franchise: This type of franchise includes not only a product, service and trademark, but also the complete method to conduct the business itself, such as the marketing plan and operations manuals.
Detailed explanation-4: -There are 4 basic types of franchise agreements: Single-unit, multi-unit, area development and master franchising. A single-unit franchise is the most common and is simply where a franchisor grants a franchisee rights to open and operate one single franchise unit.