2.1.4. Franchises
A subsection of Commerce, 7100, through 2. Commercial operations
Listing 10 of 27 questions
A public limited company owns and operates a number of hotels. It wishes to expand its business, increase its turnover and reduce its expenses. Explain what is meant by the term turnover. State three ways in which this company might increase its turnover. State three ways in which this company could reduce its expenses. The company may need extra capital in order to expand. Discuss whether it is better to use retained profits rather than to raise finance from banks and other financial sources. Give reasons for your answer. The Managing Director of the company has suggested that organising new hotels as franchises would be a suitable method of expansion for the company. Explain what is meant by a franchise. Explain two advantages to this public limited company of organising new hotels as franchises.
7100_w11_qp_22
THEORY
2011
Paper 2, Variant 2
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Questions Discovered
27