Abner Signed a Contract Allowing Him to Use Brian's Business

question 49

Multiple Choice

Abner signed a contract allowing him to use Brian's business model and sell products approved by Brian.Abner is:

• A)a franchise.
• B)a franchisor.
• C)a franchisee.
• D)an independent business operator.

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Definitions:

Compounded Annually

The calculation of interest on both the initial principal and the accumulated interest from past periods once a year.

Time-value of Money

The concept that money available at the present time is worth more than the same amount in the future due to its earning capacity.

Month-end Payments

Payments that are due or processed at the end of each month.

Compounded Semi-annually

A method of calculating interest in which the interest is added to the principal sum twice a year.