Alex's Uncle Recently Passed Away and Left Him an American

question 185

True/False

Alex's uncle recently passed away and left him an American Dream Real Estate franchise business. Alex is not a licensed agent or broker, nor does he know anything about the real estate business. He plans to sell his American Dream franchise to his friend Derek, who recently got his real estate license. One of the advantages of owning a franchise is that you can decide to sell out to anyone you believe is suitable for the business.

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Definitions:

Fixed Costs

These are expenses that do not change with changes in the production volume or sales, such as rent, salaries, and insurance.

Net Income

The residue of all revenues and gains minus all expenses and losses for a period, often known as the bottom line.

Sales

The total amount of income generated by the selling of goods or services by a company during a certain period.

Manufacturing Costs

Refers to the total expenses incurred in the process of producing a product, including raw materials, labor, and overhead costs.