Which of the Following Can Significantly Reduce Costs for a Franchisee

question 113

Multiple Choice

Which of the following can significantly reduce costs for a franchisee and thus increase profit margins?

• A) Controlled expansion
• B) Franchise fees
• C) Bulk purchasing
• D) Advertising costs

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Definitions:

Interest Rate

A lender demands a fee, represented as a percentage of the principal, from a borrower for asset utilization.

Payment

is the transfer of money or goods from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today.

Deposit

A sum of money placed or kept in a bank account, usually to gain interest.