Question

randy is being very deliberate as he makes his decision, as leaving his current position is a risk and the cost of the equipment stretch for he and his family. randy realizes that there is a national company that provides spray foam insulation for roofing, and that for a license fee, he can use the national companys logo, methods, advertising, and products. in considering purchasing the license, randy is considering operating as a(n)

a) entrepreneur.

b) partnership.

c) franchise.

d) corporation.

e) limited liability corporation.

Explanation:

A franchise involves a person (franchisee) paying a fee to use a company's (franchisor) logo, methods, advertising, and products. Randy is considering using a national company's logo, methods, etc., by paying a license fee, which fits the franchise model. An entrepreneur starts a business independently, a partnership involves multiple owners, a corporation is a legal entity with shareholders, and an LLC is a specific corporate structure—none match as well as franchise here.

Answer:

C) franchise.