When Entering a New Industry Through the Purchase of a Franchise

question 45

Multiple Choice

When entering a new industry through the purchase of a franchise, a small business owner should

• A)examine the industry.
• B)examine potential competitors.
• C)examine position relative to other new franchises.
• D)all of these.

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Definitions:

U.S. Tax System

A structured framework by which the federal, state, and local governments in the United States collect taxes from individuals and businesses based on income, sales, property, and other financial activities.

Primary Federal Tax System

The principal tax collection mechanism of the federal government, including income, payroll, and corporate taxes.

Primary State

The initial or foundational level of government authority in a country, often responsible for key areas such as law enforcement and taxation.

Progressive Tax

A rephrased definition: A taxation system where the tax rate escalates as the taxable income or base increases, ensuring those with greater financial resources bear a larger portion of the tax burden.