1) Defenition of franchise a) A business that uses name, logo and trading systems of an existing successful business. b) A business that uses name , logo and trading system of a new business c) A business that uses name, logo and trading systems of an existing business in different countries 2) Franchisee and Franchisor do the same job a) True b) False 3) Franchisor has the right to a) to open stores and sell products or services using its brand b) to use an existing business' trademarks, associated brands, and other proprietary knowledge to market and sell the same brand c) sell all the shares of the business 4) Advantages of Franchising for the franchiser a) Franchising is a faster method of growth than using internal growth. b) The franchisor still needs to ensure quality standards are met. c) The franchisor sells the agreement to someone who has been vetted and is more motivated to succeed which is better for the business d) The franchisee, as the owner of the franchised unit, gets to keep the profits they generate e) Buying a franchise is usually cheap. 5) Disadvantages of Franchising for the Franchisee a) Buying a franchise is usually very expensive. b) Franchisee gain from diseconomies of scale c) The franchisee is constrained by the standards and practices set by the franchisor.

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