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:

Variable Cost

A corporate expense that changes in proportion with production output, such as raw materials and labor costs, differing from fixed costs.

Operating Cash Flow

The cash generated from the normal operations of a business, excluding financing and investing activities.

Variable Costs

Charges that adjust in direct proportion to the amount of goods produced or sold.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and loan payments.