Question

1. Describe what a Franchise is.

2. There are two ways a Corporation dissolves. Describe each:

   a.Voluntary Dissolution –

​​​​​​​b.Involuntary Dissolution –

3. What does caveat emptor mean?

Answer 1

Franchise is a type of licence that franchisee obtained in order to allow them to have an access to the franchiser proprietary knowledge and unique business skills and trademark to sell them certain product in the business name.

voluntary dissolution means a dissolution which has been voluntarily approved by the shareholders of the company.

involuntary dissolution means a dissolution which has been ordered by the court and it was not voluntarily dissolved.

Caveat emptor means let the buyer aware as It emphasis that a buyer should always be due delegant while making purchases and he should be sceptical.