Which of the Following Statements Regarding Franchising Is FALSE

question 122

Multiple Choice

Which of the following statements regarding franchising is FALSE?

• A)Franchises are riskier than other forms of business ownership.
• B)Franchisees have the benefit of name recognition.
• C)Franchisors provide a wide range of support to franchisees.
• D)Benefits for the franchisor include opportunities for expansion that might not otherwise be available.

---

Definitions:

Gross Method

A method of recording purchases at the gross invoice amount before deducting any cash discounts.

Adjusted Trial Balance

A trial balance prepared after adjusting entries are made, used to verify the balance of debits and credits before generating financial statements.

Multiple-Step Income Statement

A detailed financial statement that divides revenue and expenses into separate categories, such as operating and non-operating sections, to highlight different aspects of business performance.

Brookstone Art Supplies

A specific supplier or retailer, but without more context, it is not a recognized accounting or business key term. NO.