McDonald's Has Licensed Its Brand Name, Operational Systems, and Trademarks

question 74

Multiple Choice

McDonald's has licensed its brand name, operational systems, and trademarks to individual restaurant owners in Europe. This is called international ________.

• A) leasing
• B) marketing
• C) franchising
• D) diversifying

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects debts from its customers.

Acid-Test Ratio

A stringent indicator that measures a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Gross Margin Percentage

A financial metric that measures the difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage; it shows the proportion of money available to cover other expenses and profit.