Jake Wants to Open a Subway Franchise in His Small

question 57

Multiple Choice

Jake wants to open a Subway franchise in his small town. To do this, he must pay the company a ________ fee.

• A) slotting
• B) title
• C) royalty
• D) merchandising
• E) residual

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Definitions:

Face Value

The nominal or dollar value printed on a security or financial instrument, such as a bond or stock certificate.

Interest Rate

The percentage of a loan that is incurred as interest by the borrower, usually represented as an annual percentage of the outstanding loan amount.

Non-Interest-Bearing

Describes a financial instrument that does not generate interest income for the holder.

Promissory Note

A pecuniary promise recorded in a document, where one side agrees to pay a definite financial sum to the other, available either on demand or on a date in the future that has been agreed upon.