Verbal Critical Reasoning Questions 1

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Passage 1:
Companies wishing to increase their growing pace occasionally use the method of franchising which provides a new owner with the permit to use their business identity and in return to purchase products exclusively from the company. However most companies will aim to minimise the use of this method and often prefer the expansion of the companies’ own branches. Companies who have previously used franchising learnt the essential need to monitor the business operation of the franchised branch.

Difficulties arise from franchisees and companies disagreeing on business policies such as customer care, service delivery efficiency and quality of human interaction. Inadequate attention to the monitoring of franchisees on the part of the companies is typically the cause of subsequent problems.

 

1. Service delivery efficiency has reduced companies’ will to franchise.

  • True
  • False
  • Cannot say

 

The answer is Cannot Say.

 

Explanation
The text explains that service delivery efficiency is a cause for disagreement between  franchisees and companies, but it doesn’t mention whether this is why companies are reluctant to franchise.

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