Question

Your friend Jordan wants to transition to becoming a business owner but is hesitant on finding a market, business name, logo, etc. You suggest looking into a ________ model because then he can receive guidance and mentorship, along with a system that already has proven profitable. A. franchise B. sole proprietor C. LLC D. scale

Answer 1

Jordan should consider a franchise model to gain guidance and a proven system, paying franchise fees and royalties in exchange for support and the use of an established brand.

Therefore the correct answer is option A franchise

Step-by-step explanation:

If your friend Jordan is hesitant about finding a market, business name, logo, and wants guidance and mentorship along with a system that is already proven to be profitable, you would suggest looking into a franchise model. By choosing a franchise, Jordan can benefit from being part of a recognized brand with a pre-existing customer base.

The franchisor typically offers substantial support, including training, supply chain management, and assistance in setting up operations. In exchange for this support, Jordan would pay a franchise fee and ongoing royalty fees. This can be a more straightforward path to business ownership compared to starting from scratch as a sole proprietor or forming an LLC, which require building everything from the ground up and taking on full liability respectively.