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Why Is Franchising an Attractive Method of Entering a Foreign

Question 88

Multiple Choice

Why is franchising an attractive method of entering a foreign market?


A) because the franchisor does not have to put up any capital to get the business off the ground
B) because the franchisor has no liability if the business fails
C) because the franchisee assumes the majority of the capital costs and human resource issues
D) because there are very few risks involved in franchising
E) because the franchisee has no liability if the business fails

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