In Addition to the Regular Monthly Payment of a Percentage

question 58

Multiple Choice

In addition to the regular monthly payment of a percentage of gross income to her franchisor, Wilma is required to submit a smaller percentage for advertising costs. She is willing to do this because

• A) otherwise she will not be able to operate her franchise.
• B) she will receive a discount on the cost of her inventory.
• C) she will in turn be charged a lower insurance premium.
• D) the franchisor can promote the business more cost-efficiently than Wilma can on her own.

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Definitions:

Media Cooperation

The partnership or collaborative efforts between different media outlets or between businesses and media outlets for promotional or informative purposes.

Sales Promotion

Marketing activities aimed at increasing consumer demand and stimulating sales for a limited period.

Crest Toothpaste

A brand of toothpaste recognized for its dental hygiene products.

50-Cents-Off Coupon

A promotional tool that offers a discount of fifty cents on a particular product or service, used to stimulate sales and attract customers.