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Standard XI
Business Studies
Licensing and Franchising
Advantages to...
Question
Advantages to a franchisor in a franchise are _____________________.
A
capital injection
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B
market penetration
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C
risk sharing
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D
all of the above
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Solution
The correct option is
D
all of the above
Advantages to a franchisor in a franchise
capital
injection
is an investment of
capital
into a company or institution, generally in the form of
cash
, equity, and debt
Market penetration refers to the successful selling of a product or service in a specific market.
Risk Sharing
is an entirely different concept. It involves
sharing
(dividing) common
risk
among two or more persons
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Similar questions
Q.
Advantage(s) to a franchiser in a franchise is/are _______.
Q.
What is the advantage to the franchisee in a franchising?
Q.
A. In turn, the buyer is called the franchisee.
B. These two parties are called the franchisor and franchisee.
C. This means that it gives permission for the buyer to use its name and sell its product.
D. He pays money to the franchisor, and agrees to obey the rules and franchisor makes.
E. A franchising agreement includes two parties.
F. The franchisor the business house/entity which grants the franchisee license.
Rearrange the following six sentences A, B, C, D, E and F in the proper sequence to form a meaningful paragraph; then answer the questions given them.
Which of the followings should be the SECOND sentence after arrangement.
Q.
Compared to licensing, franchising is a more advantageous entry mode because __________.
Q.
Compared to licensing, franchising is a more advantageous entry mode because ________________________.
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