By opting for franchising instead of setting up company-owned branches,a firm most likely overcomes the problem of ________.
A) managerial scarcity
B) brand inconsistency
C) inadequate service
D) strategic control
E) free riding

Question

Quizplus · Accepted Answer

Franchising allows a firm to expand its operations by leveraging the managerial capabilities of franchisees, thus overcoming the problem of managerial scarcity. This model enables the firm to grow without the need to find, hire, and train a large number of managers itself.

By Opting for Franchising Instead of Setting Up Company-Owned Branches,a