A company, Pluto Inc., employs the franchising strategy to enter a new national market. Which of the following statements is more likely to be true of Pluto?
A) It is more likely to be a service company.
B) It is more likely to have a greater control over the quality the products manufactured in the foreign country.
C) It is less likely to impose strict rules regarding how a franchisee does business.
D) It is less likely to receive royalty payment from the franchisee.
E) It is more likely to bear the development costs associated with opening a foreign market on its own.

Question

Quizplus · Accepted Answer

Franchising is commonly used by service companies, such as fast-food chains, to expand into new markets.

A Company, Pluto Inc