Answer

A franchise is a method of doing business in which ________.

A) an entrepreneur sets up and manages a small business based on an innovative idea or product
B) a company’s products or services are sold to independent third-party operators under the company’s name
C) a company buys ownership of another company and absorbs its employees and customer base into its own structure
D) a business is able to achieve rapid sales growth in the service sector due to taking advantage of many advertising opportunities
E) a small company is bought by a larger one and is absorbed into its existing structure


BExplanation: B) By definition, a franchise is a method of doing business in which the franchisor sells a company’s products or services under the franchisor’s name to independent third-party operators called franchisees.