When a McDonald’s opens in your local area by franchising to a franchisee, what is the benefit to the McDonald’s corporation?

1.In 2002, Ebay, the online auction site, and PayPal, the online electronic payment service came together. This was a match that seemed to fit well together for both parties. People using Ebay to either sell or buy found PayPal to work splendidly for their Ebay transactions. This is a successful example of:

a) a partnership
b) an acquisition
c) Horizontal merger
d) a licensing agreement

2. When a McDonald’s opens in your local area by franchising to a franchisee, what is the benefit to the McDonald’s corporation?
a) McDonald’s is guaranteed to yield high revenues from the new location.
b) McDonald’s corporation benefits by increasing by having a new equal partnership with its franchisee.
c) McDonald’s corporation is avoiding the financial investment and liability of a chain of stores.
d) McDonald’s corporation is benefiting by adding one more location to its chain of stores.