Why Did Gabriella Choose Franchising as Her Method of Entry

question 54

Multiple Choice

Why did Gabriella choose franchising as her method of entry for her jewellery and accessory business?

• A) she wanted to maintain a high level of control in the business and was willing to take significant risks to enter the overseas market
• B) she was not concerned about her level of control in the business but was concerned about her level of risk
• C) she wanted to maintain a moderate level of control but lacked funds to open a division overseas
• D) she was very concerned about her level of control in the company and wished to join a partnership to enter the overseas market

---

Definitions:

Dividends Declared

Profits that a company's board of directors has decided to distribute to its shareholders, usually in the form of cash payments or additional shares.

Shareholders' Equity

The remaining value of a company's assets after liabilities are subtracted, which signifies the ownership stake of the shareholders.

Debits

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Credits

Entries in accounting that increase liabilities or equity or decrease an asset or expense.