Mark Owns a Chain of Hotels

question 34

Multiple Choice

Mark owns a chain of hotels. Roby acquires a license that allows him to extend the chain under the supervision and control of Mark. This type of license is an example of a ________.

• A) franchise
• B) patent
• C) copyright
• D) patent pool

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, such as rent, utilities, and salaries, excluding direct production costs.

Perpetual Inventory System

An inventory accounting system that employs computerized point-of-sale systems and enterprise asset management software to instantly register the purchase or sale of inventory items.

Gross Method

A method of recording purchases at the gross invoice amount before any discounts are applied.

Credit Terms

Conditions under which credit will be extended to a borrower, including repayment schedule, interest rate, and the duration of the loan.