Which of the following best describes a business format franchise?
A) It is a broad franchise agreement in which a franchisee pays for the right to use the name, trademark, and production methods of a franchisor.
B) It is a type of franchising arrangement in which a franchisor makes a product and licenses a franchisee to sell it.
C) It is a type of franchising arrangement in which a franchisor shares ownership with a franchisee by selling a number of its shares.
D) It is a broad franchising agreement in which a franchisee pays a franchisor for the right to use the production methods of the franchisor and functions under a different name and identity.
Question 2
Laura wants to start a business, but she is unsure of the legal form best for her. Short of cash, she has decided to take the form that is the least expensive and most flexible in terms of decision making and implementation. Which would you recommend?
A) Joint venture
B) Partnership
C) Sole proprietorship
D) Cooperative
E) Corporation
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