Which of the Following Statements Is True of Franchising

question 4

Multiple Choice

Which of the following statements is true of franchising?

• A)An individual only acquires the rights to a name and not the rights to methods of operation.
• B)An individual experiences most freedom in this form of business ownership.
• C)A franchisee receives cash payments from the franchiser on a monthly basis.
• D)A franchisee does not receive accounting support from the franchiser.
• E)A franchisee often receives building specifications and designs from the franchiser.

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Definitions:

Unearned Rent Revenue

Income received for rent that has been paid in advance by a tenant but not yet earned by the landlord.

Wages Payable

Wages payable is a liability account that records the amounts owed to employees for work that has been performed but not yet paid.

Capital Lease Contracts

Lease agreements that transfer substantially all risks and rewards of ownership from the lessor to the lessee, effectively treated as a purchase.

Computer Software

Computer Software encompasses programs and operating information used by a computer, directing how the hardware processes data and performs tasks.