An ________ Refers to an Agency That Arises When a Franchisor

question 64

Multiple Choice

An ________ refers to an agency that arises when a franchisor creates the image that a franchisee is its agent when in fact an actual agency does not exist.

• A) apparent agency
• B) implicit agency
• C) agency by ratification
• D) implied agency

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Definitions:

Incorporation Fees

Charges associated with the legal process of forming a corporation, including filing necessary documents with the government.

Common Stock

Common stock signifies ownership in a corporation, granting holders a vote in corporate matters and a portion of the company's earnings via dividends.

Treasury

The department within a government or corporation responsible for managing monetary assets and debt obligations.

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, often with predetermined dividend payments.