Franchise managers are most likely encouraged to work hard because they are ________.
A) residual claimants
B) human capital
C) stockholders
D) opportunists
E) free riders

Question

Quizplus · Accepted Answer

Franchise managers are residual claimants, meaning that they receive a share of profits earned by the franchise. This creates an incentive for them to work hard and maximize profits, as they will directly benefit from their efforts.

Franchise Managers Are Most Likely Encouraged to Work Hard Because