Mcdonalds or hilton choose to franchise its local outlets

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Q1. Some fields have large enough quantities of both oil also natural gas that coordination must be achieved for the production of both, rather than oil alone as in our examples. Will fields with both oil also gas have greater difficulties in unitization than fields with oil or gas alone? Elucidate

Q2. Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them also staff them with employees? In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fact consistent with our discussion of specific investments?

Reference no: EM1312176

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