Which of the Following Statements Is True of Franchises in the United

question 15

Multiple Choice

Which of the following statements is true of franchises in the United States?

• A) They offer access to a proven business system and product.
• B) Estimates show that women own about 75% of all franchises.
• C) Minority participation in franchises, both as franchisees and franchisors, is relatively high.
• D) The growth and expansion of franchises are restricted domestically.

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Definitions:

Adjusting Entry

An accounting record created at the closing of a fiscal period to assign revenues and expenses to their respective periods.

Reversing Entry

An accounting entry that is made at the beginning of a period to reverse or cancel out an adjusting entry made in the previous period.

Items Matching

A fundamental accounting principle that mandates the expenses related to revenue are reported in the same period as the revenue itself.

Classified Balance Sheet

A financial statement that groups a company's assets, liabilities, and equity into categorized sections for clearer analysis.