Match the Term with Its Definition

question 53

Multiple Choice

Match the term with its definition.
-To sell another franchise location within the market area of an existing franchise

• A)area developers
• B)business brokers
• C)business format franchising
• D)churning
• E)co-branding
• F)due diligence
• G)encroach
• H)master licensee
• I)multiple-unit ownership
• J)product and trade name franchising

---

Definitions:

Average Annual Gross Receipts

An average of a business's total gross income over a specified period, often used to determine tax reporting requirements or eligibility for small business tax concessions.

Complete Liquidation

The process of closing a business by selling all assets, paying off creditors, and distributing the remaining assets to shareholders.

Capital Gain

The profit from the sale of an asset or investment exceeding its purchase price, which is subject to taxation.

Ownership Interest

Refers to an individual's or entity's legal right to possess, use, and dispose of property or assets.