All of the Following Are Benefits of Becoming a Franchisee

question 49

Multiple Choice

All of the following are benefits of becoming a franchisee except

• A) reduced risk of failure.
• B) detailed operating manual.
• C) management training.
• D) reduction in control.

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Definitions:

Financing Charges

Interest and other costs associated with borrowing funds or purchasing goods and services on credit.

ROE

Return on Equity; a financial ratio that measures the profitability of a company in relation to the amount of equity, indicating how effectively shareholder equity is being utilized to generate profits.

Financial Leverage

Employing borrowed funds to amplify the potential gains from an investment, while also elevating the likelihood of incurring losses.

ROA

Return On Assets indicates how efficiently a company utilizes its assets to generate profit, calculated as net income divided by total assets.