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Question 5: A. The franchisee fixes its own selling price A major disadvantage of franchising for the franchisee is the lack of independence and control over various aspects of the business. Franchisors typically dictate pricing to maintain brand consistency, meaning the franchisee cannot fix their own selling price. Therefore, the inability to set one's own prices is a significant disadvantage. Options B, C, and D describe advantages or characteristics that are generally not true for franchisees (without franchisor approval), and if they were true, they would be advantages. Question 6: C. interest is calculated on a flat rate than at reducing balance Interest payments for hire purchases are often high because the interest is typically calculated on the original loan amount