Business Studies Multiple Choice Question – 26 February 2019

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

Which ONE of the following would be a reason to set up a new business as a franchise?

Select ONE answer:

  1. A franchisee can buy supplies from any supplier
  2. The wage rates for all the franchises are the same
  3. Franchisees can make all their own decisions
  4. A franchise has a lower risk of failure

 

Show the workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple choice question is suitable for Business Studies KS4 & KS3 classes

The answer is 4:

  1. A franchisee can buy supplies from any supplier – is not correct because the franchisee has to buy from nominated suppliers.
  2. The wage rates for all the franchises are the same – is not correct because different franchises have different wage rates.
  3. Franchisees can make all their own decisions – is not correct because a franchisee cannot make all their own decisions.
  4. A franchise has a lower risk of failure – is correct because a franchise means that the business is backed by a larger company and is less likely to fail.

 

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