Under the Franchising Code of Conduct What Must the Franchisor

question 14

Multiple Choice

Under the Franchising Code of Conduct what must the franchisor do before entering into a franchise agreement?

• A)Make a full disclosure of any risks to the franchisee.
• B)Require proof from the franchisee that the franchisee has obtained independent legal advice about the key aspects of the franchise agreement.
• C)Provide a bank guarantee to support the financial stability of the franchise business.
• D)All of the above.
• E)A and B only.

Understand the concept of sources and uses of cash in financial management.

Calculate and interpret cash coverage ratios.

Recognize the importance of liquidity measures such as current, quick, and cash ratios.

Analyze financial statements to compute key financial ratios.

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