Which of the Following Data Must a Franchisor Disclose If

question 86

Multiple Choice

Which of the following data must a franchisor disclose if the franchisor makes sales or earnings projections for a potential franchise location that are based on the actual sales,income,or profit figures of an existing franchise?

• A) Contract details of the franchisor and the existing franchises.
• B) Management methods that have been adopted by the existing franchises.
• C) The number and percentage of its actual franchises that have obtained such results.
• D) Any sales or marketing strategy employed by the franchisor in acquiring such results.

Understand the significance of the reserve requirement ratio in the banking system and its effect on money creation.

Describe the effects of bank activities and central bank policies on the overall money supply.

Recognize the different forms of money and their liquidity.

Understand the key concepts and distinctions between major psychological theories of personality (Behaviorism, Humanism, Social Cognitive Theory).

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Definitions:

Favorable Cost Variance

A situation where the actual cost of a product or service is less than its budgeted or standard cost.

Direct Materials Price Variance

The difference between the actual cost of direct materials used and the budgeted cost, based on the standard prices.

Direct Materials Quantity Variance

The deviation of the actual direct materials amount utilized in manufacturing from the expected standard amount, times the set cost per unit.

Standard Price

The predetermined cost of a single unit of product or service, used in budgeting and to measure efficiency.