Which of the Following Statements About the International Franchise Association

question 41

Multiple Choice

Which of the following statements about the International Franchise Association (IFA) is NOT true?

• A) The IFA maintains a registry of franchisors who have gone through an eligibility review service.
• B) Firms joining the IFA today are required to adhere to a code of ethics, the value of which are "trust, truth, and honesty."
• C) The IFA demands adherence to laws and offers conflict resolution services for franchisees and franchisors.
• D) The IFA encourages franchisors to recruit minorities and veterans as franchisees by offering financial incentives.

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Definitions:

Net Method

An accounting method that records purchases and sales of inventory net of discounts at the time of transaction.

Credit Terms

Conditions under which credit is extended to a buyer, including the repayment time frame, interest rates, and penalties for late payment.

Perpetual Inventory System

An inventory recording technique that updates the inventory count and cost after each purchase or sale, providing a continuous record of inventory levels.

Gross Method

An accounting method where purchases and sales are recorded at their gross amounts before any trade discounts are taken into account.