The Openings of New Fast-Food Franchises Are Typically Highly Promoted

question 21

Multiple Choice

The openings of new fast-food franchises are typically highly promoted events especially when the franchise is new to a geographic area.Special food promotions are offered on the day of the grand opening and sometimes guest appearances.Often if a grand opening event is scheduled for the first of the month,the business will actually start serving customers who happen to notice that it is open during the week prior to the first.In this way,employees can familiarize themselves with their jobs and minor problems can be handled before they become major.This pre-opening practice is most closely related to which stage of the new service development process?

• A) Commercialization
• B) Business analysis
• C) Market testing
• D) Service development and evaluation
• E) Post introduction evaluation

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that is not expected to be collected.

Subsidiary Ledger

A ledger that contains accounts of a single type. Example: The accounts receivable subsidiary ledger records all credit customers.

Uncollectible

Refers to accounts receivable that are unlikely to be recovered from debtors.

Debited

An accounting term describing an entry that increases an asset or expense account, or decreases a liability or equity account.