Which of the Following Statements Is True of Franchisors

question 37

Multiple Choice

Which of the following statements is true of franchisors?

• A) Franchisors can operate only in their home country and cannot enter international markets.
• B) Franchisors usually risk a huge capital when expanding abroad.
• C) Franchisors are often from manufacturing industries.
• D) Franchisors may suffer a loss of control over how their technology and brand names are used.

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Definitions:

Unearned Rent

Revenue received by a landlord for rent that has not yet been earned because the time period the rent covers has not yet passed.

Rent Revenue

Income earned from leasing out properties or real estate to tenants.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to update the accounts and ensure they reflect the true financial status of a company.

Prepaid Insurance

Prepaid insurance represents payments made for insurance coverage periods that have not yet occurred, and is recorded as an asset on the company's balance sheet.