Final answer:
The form of operation where you pay an initial purchase fee and monthly service charge to a parent corporation for business rights and support is known as a franchise.
Step-by-step explanation:
A form of operation in which an initial purchase fee plus a monthly service charge is paid to the parent corporation is called a franchise. Franchises allow the franchisee to begin a business based on the franchisor's business model. In exchange for training, supply chain support, and operational setup assistance, the franchisee is required to pay an initial franchise fee along with ongoing royalty fees.
Corporations are more formal business structures. To form a corporation, a company must receive permission from state and national governments. Corporations may either go public, offering shares to raise revenue, or remain private without publicly issued stock.
Other business structures include sole proprietorships, where an individual runs a private company, and partnerships, where a group shares the responsibilities and profits of the business.