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When Considering a Franchise, List at Least Three Questions That

question 52

Essay

When considering a franchise, list at least three questions that should be considered to analyze the market in which the franchise will be operating.


Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's net income or loss.

Investee Earnings

The portion of income attributable to an investor from its investment in an associated company.

Cash Dividends

Payments made by a corporation to its shareholders from the company's profits.

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