An Entity or Individual Granted the Right to Conduct Business

question 7

Multiple Choice

An entity or individual granted the right to conduct business according to specified methods and terms of another party is known as a

• A) franchiser.
• B) franchisee.
• C) franchise.
• D) licensee.

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Definitions:

Profits

Profits represent the financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Penalty

A penalty applied for violating a regulation, agreement, or statute.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, providing an overview of a financial situation over a specified period.

Independent Public Accountant

A licensed professional who performs audits and provides financial analysis and advice without being affiliated with the audited entity.