23
QuizMultiple Choice

Business Structures — Quiz

Question 23 • Personal Finance and Economics

Franchises are attractive to business owners because

Answer
A
they come with very little risk.
B
they are typically inexpensive to buy.
C
they have a proven business model.
D
they get to keep all profits.

Explanation

A franchise lets an owner use an established company’s brand, products, and operating methods. Because the business model has already been tested, it can be easier to start than building a business from scratch. Franchise owners still pay fees and share revenue, and they face financial risks, so they do not keep all profits or necessarily buy in inexpensively.

AI-written and checked against the verified answer.

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