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Peter Has Applied for a Loan to Purchase a Franchise

Question 38

Multiple Choice

Peter has applied for a loan to purchase a franchise of a popular convenience store in an area that is experiencing rapid population growth.If the loan is approved,it will MOST likely be because ________.


A) there is less risk associated with a franchise than with an independent business start-up
B) the franchise company will provide the financing
C) the population growth justifies the market need for the store
D) the franchise company will prevent other franchisees from operating in the same area
E) the franchise company has influence over the bank's loan decisions

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