Kelly Is Interested in Opening an XYZ Franchise

question 34

Multiple Choice

Kelly is interested in opening an XYZ franchise. In addition to an up-front payment of $100,000, Kelly will have to pay building costs and purchase inventory and equipment. This type of expense is called

• A) investment costs.
• B) the initial franchise fee.
• C) royalty payments.
• D) marketing fees.

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Definitions:

Lorenz Curve

A graphical representation of the distribution of income or wealth within a society, showing the proportion of the total income earned by various segments of the population.

Diagonal

Often used in a geometric context, referring to a straight line connecting two nonadjacent corners or vertices of a polygon or polyhedron.

Social Security

Government-provided insurance program that offers benefits to retirees, disabled individuals, and survivors of deceased workers.

Medicaid

A government-funded program in the United States that provides health coverage to eligible low-income adults, children, pregnant women, elderly adults, and people with disabilities.