Answer to Question #211242 in Finance for Sphesihle Zuma

Question

Every entrepreneur has Certain expectations and goals when choosing a business.

1.1 what is a close corporation in business? Give one examples.

1.2 you are a grade 7 teacher leading a discussion on the different kinds of franchising.

1.3 what are the issues to consider when discussing about capital requirement for a franchise.

Answer 1

1.1A close corporation is one whose shareholders and directors have the same rights as partners in a partnership. Close corporate shareholders, for example, are unlikely to hold formal annual meetings.

1.2 Types of franchising.

Job Franchise.

Product (or Distribution) Franchise.

Business Format Franchise.

Investment Franchise.

Conversion franchise.

1.3Issues to consider;

The business model is consistently profitable.

The business model is reproducible.

The franchised business will benefit from the economies of scale or the collective purchasing power of a large number of franchisees.

There is a large market of potential franchisees.