21
QuizMultiple Choice

Business Structures — Quiz

Question 21 • Personal Finance and Economics

Entrepreneurs who want to open a franchise

Answer
A
buys the rights from the parent company and creates his or her own rules.
B
invest in a location and create a business model for the franchise.
C
buy the rights from the parent company and invest in a location approved by the parent company.
D
invest in a location and develop a trademark for the franchise.

Explanation

A franchisee pays the parent company for the right to operate using its established brand and business model. The franchisee also invests in a location that the parent company approves. They generally do not create their own rules, business model, or trademark, so D is correct.

AI-written and checked against the verified answer.

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