Asked by Priyanka barik on Sep 24, 2024
Verified
A franchisee faces_____ risk than a salaried manager
A) More
B) Less
C) The same
D) None of the above
Franchisee
An individual or company that is granted the right to do business under the franchisor's brand and system in exchange for a fee.
Salaried Manager
An employee who receives a fixed amount of compensation from an employer, typically on a monthly or yearly basis, regardless of the number of hours worked.
Risk
The exposure to the possibility of loss or damage as a result of a given action, decision, or event.
- Discern the diverse motivational factors between franchisee partners and salaried managerial positions.
- Delve into the concepts of sharing risks and sidestepping in franchising collaborations.
Verified Answer
LM
Leeshalini Muralitharan1 day ago
Final Answer :
A
Explanation :
A franchisee bears more risk than a salaried manager because they have invested their own money in the franchise and are responsible for its success or failure. A salaried manager only has to worry about their job and paycheck, whereas a franchisee has financial and business risks that come with ownership.
Learning Objectives
- Discern the diverse motivational factors between franchisee partners and salaried managerial positions.
- Delve into the concepts of sharing risks and sidestepping in franchising collaborations.