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Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.
- a)True
- b)False
Correct answer is option 'A'. Can you explain this answer?
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Shruti and Reema were discussing to open a restaurant of McDonalds. Re...
MNC franchise: It provides entrepreneurs a low-risk opportunity to co-own a business with a proven format for success. In addition, franchising provides opportunities to capture economies of scale while empowering the entrepreneur.
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Shruti and Reema were discussing to open a restaurant of McDonalds. Re...
Statement Analysis:
Shruti and Reema are discussing opening a restaurant of McDonald's.
Reema informs Shruti that they would need the franchisee of McDonald's in order to open the restaurant.
Shruti denies this and says that McDonald's is an MNC and they do not require the franchisee.
Explanation:
Franchise:
- A franchise is a legal and commercial relationship between the owner of a trademark, brand, or trade name and an individual or company who wants to use that identification in a business.
- The owner of the franchise (franchisor) grants the licensee (franchisee) the right to operate a business using the franchisor's system, brand, and trademarks.
McDonald's:
- McDonald's is a multinational fast food restaurant chain.
- It is one of the most recognized brands globally.
- McDonald's operates on a franchise model, meaning that most of its restaurants are owned and operated by independent business owners who have obtained the franchise rights from McDonald's.
Analysis:
Reema's statement is true. McDonald's operates on a franchise model, and anyone wishing to open a McDonald's restaurant would need to obtain the franchise rights from McDonald's. Franchisees pay an initial fee and ongoing royalties to McDonald's in exchange for the right to operate under the McDonald's brand and use its systems and trademarks.
Shruti's statement is false. Although McDonald's is indeed a multinational corporation (MNC), it does require the franchisee to open and operate a restaurant under its brand. Without obtaining the franchise rights, Shruti and Reema would not be able to open a McDonald's restaurant.
Conclusion:
Based on the analysis, Reema's statement is true, and Shruti's statement is false. To open a McDonald's restaurant, they would need to obtain the franchisee of McDonald's.
Shruti and Reema are discussing opening a restaurant of McDonald's.
Reema informs Shruti that they would need the franchisee of McDonald's in order to open the restaurant.
Shruti denies this and says that McDonald's is an MNC and they do not require the franchisee.
Explanation:
Franchise:
- A franchise is a legal and commercial relationship between the owner of a trademark, brand, or trade name and an individual or company who wants to use that identification in a business.
- The owner of the franchise (franchisor) grants the licensee (franchisee) the right to operate a business using the franchisor's system, brand, and trademarks.
McDonald's:
- McDonald's is a multinational fast food restaurant chain.
- It is one of the most recognized brands globally.
- McDonald's operates on a franchise model, meaning that most of its restaurants are owned and operated by independent business owners who have obtained the franchise rights from McDonald's.
Analysis:
Reema's statement is true. McDonald's operates on a franchise model, and anyone wishing to open a McDonald's restaurant would need to obtain the franchise rights from McDonald's. Franchisees pay an initial fee and ongoing royalties to McDonald's in exchange for the right to operate under the McDonald's brand and use its systems and trademarks.
Shruti's statement is false. Although McDonald's is indeed a multinational corporation (MNC), it does require the franchisee to open and operate a restaurant under its brand. Without obtaining the franchise rights, Shruti and Reema would not be able to open a McDonald's restaurant.
Conclusion:
Based on the analysis, Reema's statement is true, and Shruti's statement is false. To open a McDonald's restaurant, they would need to obtain the franchisee of McDonald's.
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Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer?
Question Description
Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer?.
Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Shruti and Reema were discussing to open a restaurant of McDonalds. Reema informed Shruti that they would need the franchisee of McDonalds in order to open the restaurant. But Shruti denied and said that it is an MNC and they do not require the franchisee. In light of the above statements, state whether what Reema said is true or false.a)Trueb)FalseCorrect answer is option 'A'. Can you explain this answer?.
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