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In Order to Lessen the Monitoring Problems and Opportunistic Behavior

Question 1

Multiple Choice

In order to lessen the monitoring problems and opportunistic behavior of a franchisor and a franchisee, franchise contracts:


A) create provisions for high liquidated damages.
B) are complete in all respect.
C) have similar fixed charge and royalty arrangements.
D) include certain flexible clauses.

Correct Answer:

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