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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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