Jonathon Has a Business That He Has Franchised to 10

question 30

Multiple Choice

Jonathon has a business that he has franchised to 10 franchisees over the last 6 years.In seeking additional franchises,which of the following is true about financial disclosures to potential new franchisees?

• A) He must include income statements and balance sheets for each franchisee that has been in operation for 3 years or more.
• B) He must include financial forecasts and appropriately label them.
• C) He must include hypothetical examples and appropriately label them.
• D) He must include aggregate income statements and balance sheets,which combine amounts for all franchises that have been in business 3 years or more.
• E) He must include 3 years of income statements and balance sheets for the franchisor.

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Definitions:

Southern School

A term that can refer to various movements or schools in different disciplines, often implying a regional distinction or specific characteristics that differentiate it from northern counterparts.

Marco Polo

An Italian merchant, explorer, and writer who traveled through Asia along the Silk Road to China, where he spent over two decades in the 13th century.

Yuan Dynasty

The dynasty established by Kublai Khan in China that ruled from 1271 to 1368, characterized by significant cultural contributions and the integration of Mongol and Chinese elements.

Zhu Yuanzhong

Also known as Hongwu Emperor, founder of the Ming Dynasty in China, ruling from 1368 to 1398, noted for his successful expelling of the Mongols and significant agricultural, military, and administrative reforms.