XAT 2019 Question 42
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XAT
The main concern of Divya is that the financial risk of opening a franchisee is high as she will have to take out a huge loan and invest a lot in the infrastructure. Thus, the option that can let her know that the franchisee will be financially stable will help her make the decision.
Option A can be dismissed as it does not relate to the main concerns of Divya.
Getting a loan is not a problem for Divya, but to be able to repay it. Thus, option B can be dismissed.
Option D talks about a restaurant's business. This does not ensure that Divya's business would also work.
Option E will have the opposite effect.
Option C is the best choice. If Divya can charge higher prices while retaining the customers, it will increase her confidence in the ability to cover all the costs.
Hence, the answer is option C.