Under a Franchising Arrangement

question 17

Multiple Choice

Under a franchising arrangement:

• A) a franchisor owns an outlet.
• B) a franchisee develops the best system for their outlet.
• C) a franchisee owns an outlet.
• D) both the franchisor and the franchisee operate an outlet.

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Definitions:

Compensation Practices

The methods and policies employers use to determine and administer how employees are paid and rewarded for their work.

Intangible Assets

Non-physical assets that have value, such as intellectual property, brand recognition, and goodwill.

Tangible Assets

Physical and material assets such as machinery, buildings, and inventory, which have a value and exist physically.

Profitability

The ability of a business to earn a profit, or the degree to which its revenues exceed its expenses.