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    Question

    Organizations (franchisors) that decide to franchise

    (franchisors) have _____ expansion costs in opening new outlets accompanied by _____ control compared to owning their own retail outlets.
    A greater; greater Correct Answer Incorrect Answer
    B greater; reduced Correct Answer Incorrect Answer
    C reduced; greater Correct Answer Incorrect Answer
    D reduced; reduced Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Compared to owning the retail outlets, franchisors have reduced expansion costs and lose control by franchising.

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