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:

Ratio Analysis

A quantitative analysis of information contained in a company's financial statements, used to evaluate financial health, performance, and trends.

Interpretation

Interpretation involves the process of explaining the meaning of information or data, often requiring a detailed analysis to translate complex information into more understandable terms.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets, without relying on inventory.

Debt Ratio

A financial ratio that measures the proportion of total debt to total assets, indicating the company's leverage and financial health.