Business Studies

Advantages and Disadvantages of Franchise

len Alfred Ajibola - 07th April, 2021 @ 01:59 PM

Topics in Business Studies

What is an Office? Qualities of a good office layout Small office explained with its characteristics Large office: Characteristics of large office Advantages and disadvantages of small office Advantages and disadvantages of large office Advantages and Disadvantages of Corporations Advantages and Disadvantages of Limited Liability Company Advantages and Disadvantages of Partnership Credit card and Debit card explained with their similarities and differences Business Structure: What is a business structure? Advantages and Disadvantages of Franchise What is a franchise? Types of franchise Corporation explained with its types What is Limited Liability Company? What is Partnership Business? Types of Partnership What is business studies? Concept of business Elements of Management What is Management? Importance of Management Advantages and Disadvantages of Air Transport Advantages and Disadvantages of Rail Transport

Academic Questions in Business Studies

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A person employed by an organization to carry out the everyday duties of a typical office, and at the same time perform a couple of other functions for their company which may vary from one company to another, is termed a _____.

  • A. Secretary

  • B. Personal Assistant (P.A)

  • C. Secretary General

  • D. Clerical Staff

  • E. Supervisor

  • F. Bookkeeper

Dual Entry System - Len Academy

The above image best describes the _____.

  • A. Ledger system

  • B. Journal system

  • C. Double entry system

  • D. Balance sheet system

  • E. Principles of accounting system

  • F. Balanced accounting system

An accounting system focused primarily on a balanced debit and credit side is termed _____.

  • A. Ledger system

  • B. Journal system

  • C. Double entry system

  • D. Balance sheet system

  • E. Principle of accounting system

  • F. Balanced accounting system

With regards to money, which of the following statement is incorrect?

  • A. Money is crucial for the survival of every human being

  • B. Money is completely advantageous

  • C. Money is defined as anything that is generally accepted as a medium of exchange

  • D. Monopoly is said to exist when money and wealth exists in the hands of a few

  • E. Excess money in an economy can lead to inflation

  • F. When a person receives money that isn't commensurate with the job he or she had done, then that's underemployment

Which of the following statement is wrong with regards to business?

  • A. Business involves the exchange of something for another thing or money

  • B. Business is an economic activity

  • C. In business, profit goes beyond money

  • D. Businesses do not have social responsibilities to their customers

  • E. The exchange of services is an aspect of business

  • F. Businesses can be affected by government policies

Consumer _____ are the laws and methods put in place by various agencies so that consumers can enjoy maximum satisfaction on the goods they buy and services rendered to them.

  • A. Protection
  • B. Policy
  • C. Rights
  • D. Defence
  • E. Guide
  • F. Safety

Which of the following is not a characteristics of business?

  • A. The buyer and seller must always come into a contract agreement

  • B. Risk from unforseen circumstances is involved

  • C. They are subject to policies made by the government

  • D. All business transaction is aimed at making profit

  • E. It requires a discontinuous transaction between the buyer and the seller

  • F. Investments are required to begin a business

Which of the following is not a Right of Consumer Protection?

  • A. Right to Education
  • B. Right to Choose
  • C. Right to Safety
  • D. Right to the Good things of Life
  • E. Right to be Assured
  • F. Right to Compel

Advantages of a Franchise:

  1. Small business owners will enjoy the benefits of a larger business network.
    Please read on the concept of a franchise and types of franchise here.

  2. Experience may not be a necessity when starting a franchise. This is true because the parent company (franchisor) may provide the trainings needed.
    Please read on inbound marketing here.

  3. The franchisee may acquire products for free and pay back after sales had been made.
    You can read on the wholesalers here.

  4. The franchisor may run adverts on their products. (This is of benefit to the franchisee).
    Please read on advertising here.

  5. The franchisor may spend less when sourcing a franchisee on a per-unit basis.

  6. Since the franchisee isn't monitored by the franchisor, it therefore implies an ease of supervision on the part of the franchisor.
    You can read on division of labour here.

  7. A multi-unit franchisee can significantly increase the market demand for a product.
    You can read on demand and law of demand here.

  8. The selling power of a known brand can rapidly earn the franchisee more profit.
    Please read on the concept of market in economics here.

  9. The franchisor can reduce the expenses spent on staff salaries since the franchisee may assume some of these roles.
    You can read on cost and types of cost here.

  10. A new product from the franchisor can easily penetrate the secondary and tertiary markets via the actions of the franchisee.
    Please read on place as a marketing mix here.


Disdvantages of a Franchise

  1. The franchisee may have to pay some amount of money before a franchise can commence.
    Please read on sole proprietorship, it's advantages and disadvantages here.

  2. There is a need for a formal (legal) agreement before a franchise can exist.

  3. The franchise agreement may spell out how the franchisee may run the business, thus presenting no room for new innovations from the franchisee.
    Please read on the principles of marketing here.

  4. The strategy of some franchisee or markerters may bring disrepute to the franchisor.
    You can read on retail market here.

  5. The franchisor will typically determine the operational space of the franchisee. This may reduce the mobility and profit margin of the franchisee.

  6. The franchisor have the right to terminate the franchise agreement at the end of the franchise term. This action may adversely affect the franchisee.

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Amazing facts in Business Studies

The world's 100 richest people earned enough money in 2012 to end global poverty four times over

NOTABLE POINTS IN Business Studies

Consumer protection refers to the ways or methods through which consumers enjoy maximum satisfaction from the goods they buy and services rendered to them.

The agencies of consumer protection assists in protecting the consumer rights. These agencies may also be referred to as the organs of consumer protection. Basically, we have three of them, they are:

  1. Government Agencies

  2. Independent Agencies

  3. Legislation

Please read on consumer protection here

One of the responsibilities of the government of every nation is to set up agencies or organizations that will protect the interest of the consumers and invariably, the people.

Below are some of the government agencies of consumer protection:

  • National Drug Law Enforcement Agency (NDLEA)
  • National Agency for Food, Drug Administration and Control (NAFDAC)
  • Consumer Protection Council (CPC)
  • Rent Tribunal
  • Ministry of Health
  • Ministry of Commerce
  • Ministry of Transportation
  • Ministry of Environment
  • National Wages and Salaries Commission

Please read on the government agencies of consumer protection here