Inconsistency from Franchisee to Franchisee Is Generally to Be Avoided

question 17

Multiple Choice

Inconsistency from franchisee to franchisee is generally to be avoided in a franchise system because:

• A) It will erode brand value
• B) Different pricing is considered unfair by the customer
• C) Offering different products in different markets cannot be properly management
• D) Information system and financial control, including auditing cannot be properly conducted
• E) It leads to confusion throughout the value chain

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Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to check the accuracy of financial records.

Errors In Journalizing

Mistakes made during the process of recording transactions in the journal, which can include omission, duplication, or incorrect entries.

Owner's Drawings

These are the withdrawals of cash or other assets by the owner from the business for personal use.

Owner's Capital

The amount of equity in a company that belongs to the owner, including initial investment plus any retained earnings.