Question

milo is seriously considering buying a small fast - food franchise. his friend, a successful entrepreneur, warns milo to make sure he has done as much research as he can about the franchise before \signing on the dotted line.\ what does he want milo to do?

a. he wants milo to be sure that he has the expertise to run the business.
b. he wants milo to make sure that he has the financial means for paying for the business.
c. he wants milo to understand that owning a franchise gives him total control.
d. he wants milo to perform due diligence when evaluating the franchise opportunity.
e. he wants to ensure that milo has a proper advisory board set up prior to buying the business.

Explanation:

• Due diligence involves comprehensive research before making a business - related decision (like buying a franchise).
• Option A is about expertise, which is part of due diligence but not the overall meaning of "doing as much research as he can".
• Option B focuses on financial means, again a subset of due - diligence research.
• Option C is incorrect as franchisees do not have total control.
• Option E about an advisory board is not related to the core of doing research.

Answer:

D. He wants Milo to perform due diligence when evaluating the franchise opportunity.