Question

A franchise can be formed:

Select one:
a. only as a general partnership
b. only as a corporation
c. either corporation or partnership, but never sole proprietorship
d. can be corporation, partnership or sole proprietorship

Answer 1

A franchise can be formed as a corporation, partnership, or sole proprietorship. The choice of business structure for a franchise depends on various factors such as the goals of the franchisee and legal requirements.

Step-by-step explanation:

A franchise can be formed as either a corporation, partnership, or sole proprietorship.

When starting a franchise, an individual or group purchases the rights to operate a business based on a model developed by the franchisor. The franchisor often provides training, support, and supply chain assistance. In return, the franchisee pays a franchise fee and ongoing royalty fees.

The choice of business structure for a franchise depends on the needs and goals of the franchisee, as well as legal and financial considerations.