O-LevelCommerceBusiness enterprise7100/12 · May/June 2016 · Q361 Mark

The Wheel Specialist is a franchise that restores alloy car wheels. Which statement about franchising is correct?

AThe franchise company covers the costs of starting and operating the business.

BThe franchise company employs all the staff working for the franchisee.

CThe franchisee chooses the name such as The Wheel Specialist.

DThe franchisee pays royalties based on revenues to the franchise company.

✓ Correct answer

D: The franchisee pays royalties based on revenues to the franchise company.

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Topic: Business enterprise, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, May/June 2016 Paper 1 Variant 2, question 36.

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