A _____ of Franchising to the _____ Is That Franchising

question 27

Multiple Choice

A _____ of franchising to the _____ is that franchising leverages the business format to gain wider distribution.

• A) Benefit; franchiser
• B) Challenge; franchiser
• C) Benefit; franchisee
• D) Challenge; franchisee

---

Definitions:

External Financing

Funds a company seeks from outside sources, such as loans, investor equity, or bonds, to finance its activities.

Internal Growth Rate

The maximum rate at which a company can expand its operations using only internally generated revenue and without resorting to external financing.

Equity Multiplier

A financial ratio that measures the portion of a company's assets financed by stockholders' equity, reflecting financial leverage.

Cash Dividends

Payments made by a company out of its profits to its shareholders, usually on a periodic basis.