Which Source of Information Is Not Recommended to Help a Potential

question 1

Multiple Choice

Which source of information is not recommended to help a potential franchisee investigate a franchising opportunity?

• A) The franchisers themselves
• B) The franchiser's suppliers
• C) Existing and previous franchisees
• D) Independent, third-party sources

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Definitions:

Cash Receipts

The total amount of money, including cash, checks, and credit card payments, received by a business during a given period.

Internal Control Procedures

Processes implemented by a company to ensure integrity of financial and accounting information, promote accountability, and prevent fraud.

GAAP

GAAP stands for Generally Accepted Accounting Principles, which are standardized guidelines and practices for financial accounting and reporting in the U.S.

IFRS

International Financial Reporting Standards, a set of accounting guidelines that provide a global framework for businesses to prepare and disclose their financial statements.