Which of the Following Is an Instance of an Area

question 99

Multiple Choice

Which of the following is an instance of an area franchise?

• A) Burger Palace franchises an independently owned restaurant to make and sell its products in New Wilshire.
• B) FreshoCo. ships Fresho in the form of a drink concentrate which is prepared and bottled locally in Almia.
• C) Victory gin licenses a retail dealer to retail its products in Ambrosia.
• D) Ashbury King wants to start operating in Rolland and hires a Rolland subfranchisor to sell the franchise on behalf of Ashbury King.

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Definitions:

Bank Line

A bank line or line of credit is an arrangement between a financial institution and a customer that sets the maximum loan balance that the borrower can access.

Interest Payments

Interest payments are the amounts paid by borrowers to lenders as compensation for the use of borrowed money or assets, typically expressed as an annual percentage rate.

Compensating Balances

Compensating balances are minimum account balances that a company agrees to maintain in a bank account as part of a borrowing arrangement to offset bank service charges or qualify for better loan terms.

Cash Discount

A reduction in the invoice price offered by sellers to buyers for prompt payment of their bill, aimed at encouraging early payment.