Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise growth Strategies

Question:
Assertion: Business franchise opportunity ventures is the most popular form of franchising.
Reasoning: Business franchise opportunity ventures require that a business owner purchases and distributes the products for one specific company.
Options:
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct.
Correct Answer:
Assertion (A) is not true but Reasoning (R) is correct.
Explanation:
A is wrong. Business format franchise opportunity is the most popular form of franchising.
Business franchise opportunity ventures: These ventures typically require that a business owner purchases and distributes the products for one specific company. The company must provide customers or accounts to the business owner, and in return, the business owner pays a fee or other consideration as compensation. Examples include vending machine routes and distributorships.