Roshni Owns Express FoodMart,the Franchisee of a Local Retail Shop

question 97

Multiple Choice

Roshni owns Express FoodMart,the franchisee of a local retail shop.Which of the following will be one of Roshni's chief concerns regarding owning the franchise?

• A)The franchisor does not provide her with the required supplies.
• B)The franchising agreement is too restrictive.
• C)The franchise has the benefit of name recognition.
• D)The franchisor can negotiate better deals on ingredients,supplies,and real estate,because of its financial strength.

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Definitions:

Raw Materials Inventory

The total cost of all raw materials that are yet to be used in the production process.

Standard Costs

The preset costs for delivering a product or service under normal conditions.

Pounds

Pounds refer to a unit of mass used in the imperial system, or can also refer to the British currency (GBP).

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the product's cost.