Question

Module 13 Review Questions Due Apr 14 by 11:59pm Points 10 Submitting a file upload This chapter examines the basic features of three major business forms-sole proprietorships, partnerships, and corporations -and some of the important advantages and disadvantages of each. The chapter also covers briefly other types of business organizations, including limited liability companies, joint ventures, syndicates, joint stock companies, business trusts, and cooperatives. Discuss private franchises and submit your answer to the review question.

Answer 1

“Private Franchise” is a form of business organization wherein a private party is allowed by the supplier or manufacturer of the product or service to sell the product or service in the name of the supplier. It can be understood with an example as : A popular coaching institute running successfully in a part of a country allows a private party to open a branch of the institute in some other part of the country.

It has a benefit for the supplier that he can extend his business without much hassle and further to the areas where it may not be possibly individually. Further, it has a benefit for the private franchise holder that he has a establish brand in the market and he is not required to make financial arrangements for the start of the business.