O-LevelCommerceBusiness enterprise7100/12 · May/June 2012 · Q371 Mark

What is a disadvantage of a franchise to the franchisee?

AThe franchisee may have a local monopoly in supplying the products or services.

BThe franchisee may only sell products or services approved by the franchisor.

CThe franchisee needs to obtain supplies from independent wholesalers.

DThe franchisee will have to meet all the costs of advertising the product or service.

✓ Correct answer

B: The franchisee may only sell products or services approved by the franchisor.

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Topic: Business enterprise, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2012 Paper 1 Variant 2, question 37.

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