Why Is the Sharing of Profits a Limitation to Becoming

question 96

Multiple Choice

Why is the sharing of profits a limitation to becoming a franchisor?

• A) The franchisee will not share profits.
• B) Only part of the profits from the operation belong to the franchisor.
• C) The franchisor must spend those profits on training the franchisees.
• D) The sharing of profits reduces the franchisor's control.

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Definitions:

Fixed Stream

A series of fixed payments over a period of time, such as those from bonds or annuities.

Variable Level

Refers to an attribute or factor that can change in value over time or across different situations.

Specified Formula

A precisely defined mathematical equation or method used to solve a problem or determine an outcome.

Financial Asset

An intangible asset whose value is derived from a contractual claim, such as stocks, bonds, or bank deposits.