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goji.go goji.go
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Posts: 5977
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11 years ago
Peter has applied for a loan to purchase a franchise of a popular convenience store in an area that is experiencing rapid population growth. If the loan is approved, it will MOST likely be because ________.
A) there is less risk associated with a franchise than with an independent business start-up
B) the franchise company will provide the financing
C) the population growth justifies the market need for the store
D) the franchise company will prevent other franchisees from operating in the same area
E) the franchise company has influence over the bank's loan decisions
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Diesel
Replies
bbb
wrote...
#1
11 years ago
A) As a franchisee, it is often easier to get approved for a business loan because lending institutions view franchisees as carrying fewer risks than independent small businesses. A franchise company does not typically provide funding, nor would it necessarily prevent other franchisees from operating in the same area. Population growth would be a less important consideration for the lender, because there may be other similar stores competing with the new business to satisfy any increased demand for convenience store products.
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goji.go Authorgoji.go
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11 years ago
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Diesel

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