Scenario 5-2

question 94

Multiple Choice

Scenario 5-2. Connie is considering opening a small bakery called Connie's Cookie Cupboard. She loves to bake cookies. Family and friends have told her she should consider opening a small business using her baking skills. Connie has no business experience and no idea where to start in opening her own business. She also has very few funds available. One day she is glancing through the newspaper and notices an ad for a bakery franchise that would like to open an outlet in the local mall. This franchise provides everything from equipment to packaging to full business services. She decides to look into the opportunity further.
Connie decides to pursue her franchise opportunity further. The bakery franchise looks promising. Since she has a limited amount of funds, no business experience, and no idea how to start a new business, she is seriously considering purchasing the bakery franchise located in the local mall. She obtains a copy of the document that will legally bind her.
-In Scenario 5-2, the document that she is carefully considering is the ______.

• A) franchise legal contract
• B) franchise agreement
• C) business contract
• D) partnership agreement

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Definitions:

Good Faith

The sincere intention to be fair, open, and honest, regardless of the outcome of the interaction.

Authenticity

The quality of being genuine or not counterfeit or copied, often verified through documentation or expert examination in the context of art, documents, or items of historical significance.

Negotiable

Relates to legal instruments, such as checks or bills of lading, that can be transferred from one party to another, changing ownership by endorsement.

Particular Fund

A specific investment fund targeted toward certain assets or investment strategies.