GCSE Business Franchises and Cooperatives

Which of the following is true of a franchise?

• Franchisees have permission from the franchisor to trade using the business's name.

• The franchisor owns the entire operation

• Franchisees invest in the business

• Franchisees do not keep any of the business's profits

Which of the following is true of a cooperative?

• One person makes all the decisions

• It belongs to its members

• Members share profit

• It sells shares to outside investors

Which type of cooperative is owned by the people who buy its products?

• Housing cooperative

• Consumer cooperative

• Producer cooperative

Which type of cooperative is owned by its employees?

• Consumer cooperative

• Producer cooperative

• Housing cooperative

Which of the following is a disadvantage of many cooperatives?

• Profit sharing

• Democratic organisation

• Limited money to invest in the business

• Responsive to employees or customers

Franchising is an effective way of making a business grow quickly

• True

• False

Franchisees do not have to invest any of their own money in the business

• True

• False

Franchisees normally pay a % of their revenue to the franchisor

• True

• False

Franchisors provide training for franchisees

• True

• False

Franchising is good for people who want to run a business but haven't got a business idea of their own

• True

• False