High School

We appreciate your visit to involves renting a firm s brand name and business processes to local entrepreneurs a Opening a wholly owned subsidiary b Exporting c Franchising d Licensing. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

_________ involves renting a firm's brand name and business processes to local entrepreneurs.

a. Opening a wholly owned subsidiary
b. Exporting
c. Franchising
d. Licensing

Answer :

Franchising is the practice of renting a firm's brand and business processes to local entrepreneurs, which often includes support from the franchisor and requires payment of fees. The correct answer is c. Franchising

The business practice that involves renting a firm's brand name and business processes to local entrepreneurs is known as franchising. Through this model, a franchisee acquires the rights to start and operate a business based on the franchisor's established business model, benefiting from the franchisor's existing brand recognition, operational support, and sometimes supply chain systems. As part of this agreement, the franchisee typically pays an initial franchise fee and ongoing royalty fees. Companies may use franchising as part of their externalization strategies to accommodate local market requirements, lower costs, or reduce risk, while also leveraging opportunities for rapid international growth and knowledge transfer across borders. The correct answer is c. Franchising

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