Although It Normally Involves Much Longer-Term Commitments, Franchising Is Essentially

question 34

Multiple Choice

Although it normally involves much longer-term commitments, franchising is essentially the service industry version of

• A) exporting.
• B) licensing.
• C) foreign direct investment.
• D) greenfield investment.
• E) diversifying.

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Definitions:

Year 2

Refers to the second year of a specific time frame, project, or financial period.

Variable Costing

A costing method that includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a product, excluding fixed manufacturing overhead.

Unit Product Cost

The total cost (variable and fixed) associated with producing one unit of a product.

Year 2

A fictional or unspecified second year in a sequence or period being referred to, often relative to a specific context or event.