The Primary Responsibility of the Franchisor, Such as McDonald's or Hilton

question 113

Multiple Choice

The primary responsibility of the franchisor, such as McDonald's or Hilton International, is to:

• A) learn about the brand and technology from the franchisee.
• B) test the franchisee for potential future acquisition.
• C) transfer to the franchisee knowledge and skills needed to compete at the local level.
• D) provide feedback to the franchisee regarding how the franchisor could become more effective and efficient.

Understand the various aspects and considerations in setting up vacation programs for employees.

Distinguish between qualified and nonqualified retirement income plans and their tax implications.

Recognize the characteristics of contributory and noncontributory plans.

Analyze the suitability of different retirement plans based on individual circumstances.

---

Definitions:

Accounts Receivable

Financial dues from customers to a firm for goods or services that have been dispensed or availed but remain unpaid.

Inventory

An accounting term referring to goods and materials held by a business for the purpose of sale or production.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Operating Cash Flows

Operating cash flows refer to the amount of cash generated by a company's normal business operations, intended to sustain and grow the business.