INTRODUCTION TO ENTREPRENEURSHIP
ENTREPRENEURIAL PROCESS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An entrepreneur is accountable for his/her actions and does what is required
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What type of business is designated by a contractual agreement between the parent company and the business operator?
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Computer skills are essential in almost every business
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None of the above
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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 may qualify as a small business vs a corporate owned store. The franchise owner pays the parent company a direct investment along with ongoing royalties to operate under the brand name.
Detailed explanation-3: -The franchise agreement is a legally binding contract. It sets out the rules of the franchising relationship that both the franchisor and franchisee have agreed to.
Detailed explanation-4: -Franchising Is also a Contractual Relationship Franchising is a contractual relationship between a licensor (franchisor) and a licensee (franchisee) that allows the business owner to use the licensor’s brand and method of doing business to distribute products or services to consumers.