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In Order to Avoid Principal-Agent Problems, McDonald's Uses All but One

Question 173

Multiple Choice

In order to avoid principal-agent problems, McDonald's uses all but one of the following franchising tactics. Which is the exception?


A) It does not advertise for franchisees.
B) Franchisees must put up 40 percent of the investment themselves.
C) Franchisees must undergo a preliminary training period, followed by a 12- to 18-month training program.
D) Franchisees must already have another fast-food restaurant franchise.
E) Franchisees are required to work full-time daily in their restaurant.

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