Which statement about establishment options is true?

Which statement about establishment options is true?

• A. They include New business, Existing business, and Franchise
• B. They include only new businesses
• C. They include only existing businesses
• D. They include only franchises

Answer: (A)

Establishment options are the different ways someone can start a business: launching a new venture from scratch, buying an existing business, or buying a franchise. The true statement includes all three options—new business, existing business, and franchise—because each represents a valid path with its own setup, risks, and potential rewards. Limiting to just a new business misses those who prefer an existing operation, while focusing only on existing omits starting fresh or using a franchise model, and focusing only on franchises excludes independent startups and acquisitions. So, including all three options accurately reflects the ways to establish a business.

Establishment options are the different ways someone can start a business: launching a new venture from scratch, buying an existing business, or buying a franchise. The true statement includes all three options—new business, existing business, and franchise—because each represents a valid path with its own setup, risks, and potential rewards. Limiting to just a new business misses those who prefer an existing operation, while focusing only on existing omits starting fresh or using a franchise model, and focusing only on franchises excludes independent startups and acquisitions. So, including all three options accurately reflects the ways to establish a business.