5
practice examMultiple Choice

Practice Exam

Question 5 • Economics

A business owner would most likely create a cooperative instead of buying a franchise because

Answer
A
cooperatives are well financed by members, while franchises must raise large sums of money to launch a business.
B
cooperatives allow all owners to share profits, while franchises are required to share profits with a parent company.
C
cooperatives give majority owners the most control, while franchises make decisions with a parent company.
D
cooperatives make it easy to accumulate supplies, while franchises come with supplier relationships already in place.
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A business owner would most likely create a…