Bart Is Meeting with a Representative of GHI, a Franchisor

question 87

Multiple Choice

Bart is meeting with a representative of GHI, a franchisor. He has received information about the franchisor's finances, experience, size, and involvement in litigation. Bart has been given a

• A) master license.
• B) nondisclosure statement.
• C) franchise rule.
• D) Franchise Disclosure Document (FDD).

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Definitions:

Assets

Resources owned or controlled by a business, expected to bring future economic benefits.

Capital

It refers to financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.

Revenue

The total income generated from normal business operations, including sales of products and services before any expenses are subtracted.

Liabilities

Debts or obligations of a business that arise during the course of its operations.