Consider these factors crucial to success in any new business endeavor

Question

Consider these factors crucial to success in any new business endeavor: start-up capital, creativity, experience, and management savvy. Now consider that the owner of a franchise is, in effect, the owner of his or her own business. Entrepreneurs should ask themselves these questions to determine whether franchise ownership is desirable: How much financing is required to start my business? Do I know how to find a creative niche in the marketplace? If so, am I capable of maintaining a unique market identity while also managing day-to-day business operations? Do I know how to create a business plan that will ensure financial success? Many prospective business owners who have shortcomings in these areas have turned to franchising as a way to reduce their risk of failure.

Companies that offer franchise opportunities have demonstrated their ability to succeed. They have built an effective business model, put it into operation, and realized financial gains. Still, the advantages of buying a franchise must be weighed against contractual issues that can become complicated when the interests of franchisees and franchisors conflict. Fees charged by the franchisor may become a source of conflict as the franchisee becomes more successful. Thus, before deciding to purchase a franchise, entrepreneurs should add this to their list of questions: Are franchise owners ever truly in command of their businesses or are they forever relegated, for all practical purposes, to the status of employees? The decision to franchise requires an entrepreneur to consider the degree of autonomy he or she desires in a business as well as the amount of preparation it would take to launch one.    1 
 1. The primary purpose of the passage is to encourage readers to

A. take better control of their business endeavors.
B. consider the advantages of operating a franchise if they personally have limited business experience.
C. enter contractual agreements with caution.
D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise.
E. evaluate the motives of a potential franchisor who may take advantage of them.

2 
 2. The passage implies which of the following about the franchise arrangement?

A. It creates an illusion of success. 
B. It puts the owners of established franchises at a disadvantage.
C. It may be a viable strategy for those with entrepreneurial shortcomings.
D. It impedes entrepreneurial goals. 
E. It should be viewed by franchisees as a partnership.

3 
 3. The author most likely refers to a franchisor's fees in order to

A. intimate they may increase in direct proportion to revenues.
B. cite them as a potential eventual cause of antipathy. 
C. imply they may seem lopsided with respect to the franchisee's profits. 
D. caution that they may be unjustified in certain scenarios. 
E. buttress the insinuation that there exists no autonomy in franchising.

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c93liu · Answer

Q1. The primary purpose of the passage is to encourage readers to

My answer is A).

A) take better control of their business endeavors. 
Yes. Either you are pursuing the entrepreneurial route, in which case you need to assess the 4 aspects as described in paragraph 1, or you recognize your entrepreneurial shortcomings and pursue the franchising route, in which case you need to assess the contractual elements as described in paragraph 2, the entire passage is about taking better control of the business endeavors.
 B) consider the advantages of operating a franchise if they personally have limited business experience. 
This is only a minor detail used at the end of paragraph 1 to transition between "self-entrepreneurship" to the franchising pursuit.
 C) enter contractual agreements with caution. 
Although this is certainly true for paragraph 2, the statement is too broad and not specific enough in terms of the business context. It also ignores paragraph 1 completely.
 D) evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise. 
Again, see B) above. This is an argument used in transition from paragraph 1 to 2.
 E) evaluate the motives of a potential franchisor who may take advantage of them. 
First off, this is too negative in tone, suggesting that potential franchisors may take advantage of franchisees when the tone in paragraph 2 is more neutral and objective. Secondly, this statement is narrowly focused on paragraph 2 and completely ignores paragraph 1.

Q2. The passage implies which of the following about the franchise arrangement?

My answer is C). This is a detail question, the answer to which you can find in paragraph 2.

A) It creates an illusion of success. 
"Illusion of success" is never mentioned.
 B) It puts the owners of established franchises at a disadvantage. 
While this might be true in some franchising arrangement, to state it in so much assertiveness is a faulty generalization. While paragraph 2 cautions potential franchisees, if a franchising arrangement is always to the detriment of franchisees, then the purpose of paragraph 2 is moot.
 C) It may be a viable strategy for those with entrepreneurial shortcomings. 
Correct. See the last sentence in paragraph 1: "Many prospective business owners who have shortcomings in these areas have turned to franchising as a way to reduce their risk of failure."
 D) It impedes entrepreneurial goals. 
Again, faulty generalization similar to B).
 E) It should be viewed by franchisees as a partnership.  
"Viewed by franchisees as a partnership" is never mentioned.

Q3. The author most likely refers to a franchisor's fees in order to

My answer is B). First step is to pinpoint exactly where the reference was made in the passage. In paragraph 2: "Fees charged by the franchisor may become a source of conflict as the franchisee becomes more successful." So the reference to fees is intended to pinpoint a potential aspect that might give future conflicts between franchisors and franchisees down the road.

A) intimate they may increase in direct proportion to revenues. 
We do not have details on the exact formula of such fees. They may be directly proportional to revenues, or they may be more of a hockey-stick pattern.
 B) cite them as a potential eventual cause of antipathy. 
Correct. See our analysis above.
 C) imply they may seem lopsided with respect to the franchisee's profits. 
See A) above. We do not have enough details to assess this.
 D) caution that they may be unjustified in certain scenarios. 
The fees may amount to a lot of money in the situation of a successful operation, but we do not know whether they are justified.
 E) buttress the insinuation that there exists no autonomy in franchising. 
The fees have nothing to do with autonomy. It is more of a financial arrangement rather than an operational one.

ash124 · Answer

Understand the passage and make a map: 
 Franchising as an option
Many prospective business owners who have shortcomings in these areas have turned to franchising as a way to reduce their risk of failure. 
Things to consider while going for franchising.

1. The primary purpose of the passage is to encourage readers to

A. take better control of their business endeavors.
 Mentioned as a point but not emphasized 
B. consider the advantages of operating a franchise if they personally have limited business experience.
 Mentioned as a point but not emphasized 
C. enter contractual agreements with caution.
 Mentioned as a point but not emphasized 
D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise.
 That is mentioned in both the paragraphs 
E. evaluate the motives of a potential franchisor who may take advantage of them.
 not given 
 Answer D

2. The passage implies which of the following about the franchise arrangement?

A. It creates an illusion of success. 
 not given 
B. It puts the owners of established franchises at a disadvantage.
 not given 
C. It may be a viable strategy for those with entrepreneurial shortcomings.
 Supported 
D. It impedes entrepreneurial goals. 
 not given 
E. It should be viewed by franchisees as a partnership.
 not given 
 Answer C

3. The author most likely refers to a franchisor's fees in order to

A. intimate they may increase in direct proportion to revenues.
 not given 
B. cite them as a potential eventual cause of antipathy. 
 Given in 2nd para. 
C. imply they may seem lopsided with respect to the franchisee's profits. 
 not given 
D. caution that they may be unjustified in certain scenarios. 
 not given 
E. buttress the insinuation that there exists no autonomy in franchising.   
 not given 
 Answer B

Nirmesh83 · Answer

1.B
2 .C
3.D

Simple passage but close answers.

Sellby · Answer

Understanding the Passage: 
 
Paragraph 1: 
Lists the factors crucial for success in any new business. States the questions, regarding their own abilities in terms of the aforementioned crucial factors, that Entrepreneurs must consider before entering franchise ownership. Claims that many prospective business owners, who are weak in those crucial factors, enter franchise ownership as a way to reduce risk.

Paragraph 2: 
Lists the potential source of conflicts, between franchise owners and franchisors, that may arise in entering franchise ownership and cautions that entrepreneurs must consider all such factors and outcomes before taking up such an entrepreneurial endeavor.

Question 1: Answer IMO D 
1. The primary purpose of the passage is to encourage readers to

A. take better control of their business endeavors. 
The passage doesn't encourage to take better control but rather advises to take into consideration the one's own capabilities and potential outcomes of the entrepreneurial activity that MAY undermine one's expectation out of entrepreneurship. It doesn't seem to object even if an entrepreneur gives up some control of the business if one considers that will suit their abilities and expectations.
 B. consider the advantages of operating a franchise if they personally have limited business experience. 
The passage seems more likely to encourage considering the  disadvantages  against the advantages of operating a franchise. Furthermore, it doesn't seem to suggest anything to people with limited business experience(shortcomings) in particular bust just states that such people are already turning to franchise ownership to avoid risk, considering the advantages of operating a franchise  already  but they need to look at factors that may weigh against those advantages.
 C. enter contractual agreements with caution. 
Though this may be arguably assumed that the authors supports this, it's not the primary purpose.
 D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise. 
In essence, the passage suggests this. Entrepreneurs must consider their own abilities and entrepreneurial outcomes they expect in accordance with the ground reality. 
 E. evaluate the motives of a potential franchisor who may take advantage of them. 
This is nowhere suggested in the passage.

irisjojojo · Answer

Question 1: C

The author encourage readers to  "ask themselves these questions to determine whether franchise ownership is desirable"

Question 2: C

Question 3: C

800gal · Answer

ANSWERS : 1. D 2. C 3. B https://gmatclub.com/forum/download/file.php?mode=view&id=64052 1. The primary purpose of the passage is to encourage readers to Both paragraph 1 and 2 keep encouraging the reader (who may or may not be a prospective business owner) to ask themselves questions to gauge their potential for being a franchise owner. A. take better control of their business endeavors. Other than asking the readers to ask themselves if their business prowess is up to the mark, taking better control of business endeavors is not explored in this passage. B. consider the advantages of operating a franchise if they personally have limited business experience. Even though the paragraph does describe why franchising would be advantageous, the passage explore pros and cons in general. This is not the over arching theme. C. enter contractual agreements with caution. This is a warning in paragraph 2 to potential franchisees and not the primary idea. D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise. CORRECT EVIDENCE: ALL of passage 1 AND “The decision to franchise requires an entrepreneur to consider the degree of autonomy he or she desires in a business as well as the amount of preparation it would take to launch one.” This is certainly the overarching theme discussed as above. E. evaluate the motives of a potential franchisor who may take advantage of them. Entering contractual agreements without exploring the cons is certainly a warning given in passage 2, not the entire idea though. 2. The passage implies which of the following about the franchise arrangement? CR question. An inference MUST be true given what the passage says is true. ELIMINATE maybe’s and false choices. A.It creates an illusion of success. Illusion? The passage states outright that franchising can be very advantageous if done right. FALSE B. It puts the owners of established franchises at a disadvantage. Nowhere in the passage is this hinted at. The only disadvantage mentioned is when franchisors outperform franchisees and this distorting the franchise fees agreement C. It may be a viable strategy for those with entrepreneurial shortcomings. CORRECT “Many prospective business owners who have shortcomings in these areas have turned to franchising as a way to reduce their risk of failure.” This is correct due to the following reasons : This is a a statement of a fact by the author himself/herself. It isn’t stated as a perspective of one party or an opinion. It is factual that some owners have turned franchising, especially when they have certain shortcomings. D. It impedes entrepreneurial goals. This is just FALSE. If anything, the passage implies that franchising is a less risky entrepreneurial venture. E. It should be viewed by franchisees as a partnership. This is beyond the scope of the passage. The passage asks the reader to understand how much autonomy they require and whether franchising really does give the owner any autonomy or whether they are just another employee, not how franchisees must view franchising. 3. The author most likely refers to a franchisor's fees in order to MOST LIKELY questions require a little analysis. Mainly because the right option might still be a little ambiguous, but must be the best out of the five anyway. This is a role question, where we just need to understand why the “franchisor’s fees” were mentioned. “Fees charged by the franchisor may become a source of conflict as the franchisee becomes more successful.” DISCLAIMER- I got this question stupidly wrong. I chose A. But A is a teetering pile of assumptions. So watch out and learn from my mistakes. ] A. intimate they may increase in direct proportion to revenues. INCORRECT ] “Fees charged by the franchisor may become a source of conflict as the franchisee becomes more successful.” Source of conflict need not just be fees, it can even be an emotional spat or just a general foul feeling B. cite them as a potential eventual cause of antipathy. CORRECT! I don’t know what antipathy means. But I do know that the suffix “-pathy” is used to denote some kind of feeling/disorder. From context I can eliminate disorder. “Anti” means opposite. Opposite feelings? Some sort of bad feeling? As far as fees are concerned, the only thing noted about them as causing a source of conflict. So this is obviously correct. BTW:- I do know what ANTIPATHY means (it just means aversion), but during tests I’ve been known to forget my own name from the anxiety, so this is a handy trick

C. imply they may seem lopsided with respect to the franchisee's profits. Fees may become a source of conflict when the franchisee becomes more successful. Lopsided means imbalanced. So if the franchisee is doing okay, the fees can logically be less than or equal to his profits (sorta lopsided), if the franchisee is doing great, the fees will certainly be lesser than his profits (really lopsided), and if the franchise is failing, he probably can’t afford the fees anymore (really lopsided again) Fees becoming a source of conflict can apply to all these scenarios. Since the context is the franchisee is doing well and it suddenly becomes a conflict of interest, this isn’t the best choice. Besides, why would something seeming lopsided suddenly create conflict? D. caution that they may be unjustified in certain scenarios. The author’s tone is very objective in this scenario. This choice implies that the author’s tone was one of caution. INCORRECT E. buttress the insinuation that there exists no autonomy in franchising. What is with all these words ? (Just Kidding) Insinuation just means accusation. So the only the mention of lack of autonomy in franchising is when the author tries to persuade the reader to ask themselves the question of how much autonomy they require as owners and is there truly any autonomy in the franchising. It is not stated as fact, neither is it stated as an opinion. It is left pretty open ended. The fees are certainly not mentioned in the context of this insinuation, since no insinuation as such has been made. P.S Buttress means to reinforce, the fees weren’t mentioned for this specific reason to be reinforced anyway. But even if this word is a source of conflict, we can solve it. PASSAGE MAP NO. 9.png

SomeOneUnique · Answer

According to the best of my ability, kindly find the answer explanations below.

1. The primary purpose of the passage is to encourage readers to

EXPLANATION: Author has written the passage to caution the reader (people who want to franchise) 
A. take better control of their business endeavors.
B. consider the advantages of operating a franchise if they personally have limited business experience.
C. enter contractual agreements with caution.
D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise. => Perfect, inline with the explanation.  CORRECT 
E. evaluate the motives of a potential franchisor who may take advantage of them.

2. The passage implies which of the following about the franchise arrangement?

A. It creates an illusion of success. => Passage directly states about franchise success. Para 2 line 1 "Companies that offer franchise opportunities have demonstrated their ability to succeed" but I do not find a reason to call it illusion.  INCORRECT 
B. It puts the owners of established franchises at a disadvantage. => Franchise is appreciated by owners and that is the reason they turn towards franchising. Para 2 last line. "Many prospective business owners who have shortcomings in these areas have turned to franchising"  INCORRECT 
C. It may be a viable strategy for those with entrepreneurial shortcomings. => This is the correct option.  CORRECT 
D. It impedes entrepreneurial goals. => It is successful because it helps not because it impedes.  INCORRECT 
E. It should be viewed by franchisees as a partnership. => Passage mentions that franchise charge fee. Para 2 line 4 " Fees charged by the franchisor  may become a source of conflict". That is the reason to eliminate this choice because partnership does not charge fees. Moreover, cautions the owner not the franchisees (buyer) so we can not pick ' should be  viewed by franchisees'.  INCORRECT

3. The author most likely refers to a franchisor's fees in order to

A. intimate they may increase in direct proportion to revenues. => Author says the fees may become a source of conflict but he never said that fees will increase or decrease.  INCORRECT 
B. cite them as a potential eventual cause of antipathy. => This choice mildly conveys that (para 2 line 4) 'may become a source of conflict' = 'potential cause of antipathy'.  CORRECT 
C. imply they may seem lopsided with respect to the franchisee's profits. => Passage does mention 'more successful' but being mre successful does not mention profitable.  INCORRECT 
D. caution that they may be unjustified in certain scenarios. => Author has mentioned about contractual issues but he never gave his opinion whether its justified or unjustified.  INCORRECT 
E. buttress the insinuation that there exists no autonomy in franchising. => Last line of the passage says "The decision to franchise requires an entrepreneur to consider the  degree of autonomy  he or she desires in a business" which means autonomy could be less or more but call it 'no autonomy' is incorrect.  INCORRECT

sunitapandey · Answer

Para1: 
*Factors crucial to success in any business
*Entrepreneurs should understand if they be a franchise owner by answering these questions:-
 a) how much financing is required to start their business
 b) how to find creative niche in market
 c) how to maintain a unique market identity while also managing day-to-day business operations.
 d) how to create a business plan that will ensure financial success.
Business owners with shortcomings in the above area have turned to franchising.

Para2: 
* Companies that offer franchise opportunities have built effective business model.
* When buying a franchise contractual issue that might arise when the franchisor demands more fee for a successful franchise should be taken into account.
* Therefore before deciding to buy a franchise, entrepreneurs should add this to their list:
are franchise owners in complete command of their business or do they have to rely on their employees.
 
1. The primary purpose of the passage is to encourage readers to

A. take better control of their business endeavors.
B. consider the advantages of operating a franchise if they personally have limited business experience.
Correct
C. enter contractual agreements with caution.
D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise.
E. evaluate the motives of a potential franchisor who may take advantage of them.

2. The passage implies which of the following about the franchise arrangement?

A. It creates an illusion of success.
B. It puts the owners of established franchises at a disadvantage.
C. It may be a viable strategy for those with entrepreneurial shortcomings.
Correct
D. It impedes entrepreneurial goals.
E. It should be viewed by franchisees as a partnership.

3. The author most likely refers to a franchisor's fees in order to

A. intimate they may increase in direct proportion to revenues.
B. cite them as a potential eventual cause of antipathy.
C. imply they may seem lopsided with respect to the franchisee's profits.
D. caution that they may be unjustified in certain scenarios.
Correct
E. buttress the insinuation that there exists no autonomy in franchising.

Gaudapada · Answer

+---+---+---+
| 1 | 2 | 3 |
+---+---+---+
| D | C | B |
+---+---+---+

Franchisor : an individual or company that sells or grants a franchise for the sale of goods or the operation of a service.
Franchisee :a small-business owner who operates a franchise
 
 1. The primary purpose of the passage is to encourage readers to

A. take better control of their business endeavors.  
Passage offers pros and cons of franchising along with questions that a potential entrepreneur should contemplate, but does not take any side. Author presents the case for franchising and the case against franchising in an unbiased manner.

B. consider the advantages of operating a franchise if they personally have limited business experience.  
From  paragraph 1 ,
 
The author does encourage the readers to consider the advantages of operating a franchise if they personally have limited business experience, but that is not the  primary purpose  of the passage. In  paragraph 2 , author goes on to list some disadvantages of franchising as well, which they encourage the reader to consider.

C. enter contractual agreements with caution.  
This is the gist of  paragraph 2 , but it doesn't capture the primary purpose of the  whole passage . The author ends with this line-
 
Author is prompting the readers to make an informed choice, considering all the factors before deciding to franchise or not. Hence  C  is incomplete as an answer choice.

D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise.  
 CORRECT :   This is exactly what the author is urging readers to do. 
From  paragraph 1 ,

These are the  abilities  which readers should evaluate.

From  paragraph 2 ,

These are the  notions of entrepreneurial success  which readers should consider.

This  D  is correct.

E. evaluate the motives of a potential franchisor who  may take advantage of them .  
Author does ask the reader to consider contractual issues that may arise when there is a conflict of interest between franchisors and franchisees, but this is  not the primary purpose   of the passage. Option  E  ascribes potential sinister motives to franchisors, which the author never does.

-------------------------------------------------------------------------------------------------------------------------------------------------------------
 2. The passage implies which of the following about the franchise arrangement?

A. It creates an  illusion of success .  
 
Author makes no reference to an  illusion of success . Author asks entrepreneurs to consider the degree of autonomy they desire, but does not in any way imply that the success would be  illusory .

B. It puts  the owners of established franchises  at a disadvantage.  
The author's intended audience is entrepreneurs who are thinking of becoming  franchisees , not the  owners of the franchises (franchisors) . 
Author alludes to the fact the following - 
 
But this in no way implies that the  owners of established franchises  are at a  disadvantage

C. It may be a viable strategy for those with entrepreneurial shortcomings.  
 CORRECT :   From  paragraph 1 ,
 
The above quote clearly states that for those with entrepreneurial shortcomings,  franchising is a viable strategy . Hence  C  is correct.

D. It impedes entrepreneurial goals.  
Author implies that in some cases, franchise arrangements may in fact achieve the opposite-
 
Hence, for some people, rather than  impede  entrepreneurial goals, franchise arrangements could  facilitate  the same.

E. It should be viewed by  franchisees  as a  partnership .
  
Author makes no such suggestion to franchisees.

From  paragraph 2 ,
 
Author only asks entrepreneurs to evaluate the pros and cons of becoming a franchisee, and makes no recommendation as to how they should view their relationship with franchisors.

Franchisor  : an individual or company that sells or grants a franchise for the sale of goods or the operation of a service.
 Franchisee  :a small-business owner who operates a franchise

-------------------------------------------------------------------------------------------------------------------------------------------------------------
 3. The author most likely refers to a franchisor's fees in order to

A. intimate they may increase in  direct proportion to revenues .  
Here is what the author has to say about franchisor's fees-
 
Author states that a conflict over fees may arise as the franchisee becomes more successful, but this does need not mean that the fees are directly proportional to revenue. The author is driving at something else.

B. cite them as a potential eventual cause of antipathy.  
 CORRECT :   This is directly stated in the passage. From  paragraph 2 ,
 
First the author states that contractual issues can become complicated when there is a  conflict of interest .
The author then states an example of such a conflict-  Fees charged by the franchisor

Thus the author is citing franchisor's fees as a  potential cause of antipathy .

C. imply they may seem lopsided  with respect to the franchisee's profits .  
This option attempts to draw a connection between  franchisor fees  and  franchisee's profits .

Author never gives an indication that franchisor fees are lopsided  with respect to franchisee's profits .

D. caution that they may be unjustified in certain scenarios.  
The passage only cautions entrepreneurs that franchisor fees could be a  source of conflict .

Author never makes any value judgements about whether the fees are  justified or unjustified .

E. buttress the insinuation that there exists  no autonomy in franchising .  
From  paragraph 2 ,
 
Entrepreneurs should " consider the degree of autonomy " This does not imply that there is   no autonomy in franchising   as  E  states.

akash2703 · Answer

The crux of the passage is that while opening a business, there might be more risk involved than the risk involved while opening a Franchise. Having said that the author also asks the readers to be aware of the cons of this business opportunity and finally asks the entrepreneurs to consider all those factors while opting in the franchise business.

1. The primary purpose of the passage is to encourage readers to

IMO A

A. take better control of their business endeavors.
   
B. consider the advantages of operating a franchise if they personally have limited business experience. 
   
C. enter contractual agreements with caution.
   
D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise.
   
E. evaluate the motives of a potential franchisor who may take advantage of them.

2. The passage implies which of the following about the franchise arrangement?

IMO C

A. It creates an illusion of success.
   
B. It puts the owners of established franchises at a disadvantage.
   
C. It may be a viable strategy for those with entrepreneurial shortcomings.
 Para1 - Entrepreneurs should ask themselves these questions to determine whether franchise ownership is desirable ]
D. It impedes entrepreneurial goals.
 
E. It should be viewed by franchisees as a partnership.

3. The author most likely refers to a franchisor's fees in order to

IMO D

A. intimate they may increase in direct proportion to revenues.
   
B. cite them as a potential eventual cause of antipathy.
   
C. imply they may seem lopsided with respect to the franchisee's profits.
   
D. caution that they may be unjustified in certain scenarios.
   
E. buttress the insinuation that there exists no autonomy in franchising.

RohitSaluja · Answer

1. The primary purpose of the passage is to encourage readers to

Let's look at the passage map: 
The author talks about how one should assess his or her own abilities and based on that make a decision related to business, he then suggested that owning a franchise can be a good option for those who have certain shortcomings. Then in the second passage author cautions that one should also be careful of the contractual agreement and kind of autonomy that one will get in owning a franchise.

Now look at the option choice

A. take better control of their business endeavors.  
No this is not the primary purpose of the passage

B. consider the advantages of operating a franchise if they personally have limited business experience. 
This is only half true because the author also mentions that one should be careful as well in owning a franchise

C. enter contractual agreements with caution. 
Same as B, half-truth

D. evaluate their own abilities and notions of entrepreneurial success before purchasing a franchise. 
This aligns with our passage map, hence this is the correct answer

E. evaluate the motives of a potential franchisor who may take advantage of them. 
No this is totally out of line

2. The passage implies which of the following about the franchise arrangement?  
In the first paragraph, the author mentions that it may be a viable strategy for those who have certain shortcomings. Now let's look at the answer choices

A. It creates an illusion of success.  
Nope, this is not true

B. It puts the owners of established franchises at a disadvantage. 
Nope, this is not true. Author never mentioned owners are at disadvantage

C. It may be a viable strategy for those with entrepreneurial shortcomings. 
Yes, this is true as it is directly mentioned in the passage

D. It impedes entrepreneurial goals. 
No never mentioned in the passage

E. It should be viewed by franchisees as a partnership. 
No never mentioned in the passage

3. The author most likely refers to a franchisor's fees in order to  
This one is slightly tough, the author mentions that to caution against owning a franchise. So now let's look at the option choices

A. intimate they may increase in direct proportion to revenues. 
No author never mentioned that they may increase in direct proportion to rev.

B. cite them as a potential eventual cause of antipathy. 
The author mention that fee could become a cause of conflict so this aligns with our pre-thinking as well and hence the correct answer

C. imply they may seem lopsided with respect to the franchisee's profits. 
Nope this was not the intent of mentioning it

D. caution that they may be unjustified in certain scenarios. 
Although the author does mention that fees might increase as franchises become successful but the author did not allude to that they will be unjustified. As given the revenue is increasing so increasing fees can be justified as well because if overall the company grows its subsidies(franchise) will also grow, hence eliminate this

E. buttress the insinuation that there exists no autonomy in franchising. 
Nope this was not the intent of mentioning it

Sajjad1994 · Answer

OA of this passage is posted. It is:

DCB

Tier 1 explanation

Gaudapada 
 RohitSaluja

Tier 2

SomeOneUnique 
 800gal 
 c93liu 
 ash124

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Consider these factors crucial to success in any new business endeavor

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