Franchising,a market-based mode,usually requires less capital than a hierarchical mode business .

Name: Franchising,a market-based mode,usually requires less capital than a hierarchical mode business .
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Franchising typically requires less capital than establishing a hierarchical mode business because franchisees typically invest their own capital in opening and operating the franchise location, rather than the franchisor bearing the majority of the startup costs.

Franchising,a Market-Based Mode,usually Requires Less Capital Than a Hierarchical Mode