When Evaluating a Franchised Opportunity, Which of the Following Would

question 274

Multiple Choice

When evaluating a franchised opportunity, which of the following would you not find it necessary to do?

• A)Determine the territory of operation and whether it is an exclusive territory for the length of time of the franchise agreement.
• B)Avoid investigating the financial strength of the franchisor because it will be you who is making the money.
• C) Ask for sales and profit performance of similar franchises, and verify the information you received.
• D)Explore the market and the competition for same or similar products and services.

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Definitions:

Part-time Basis

Refers to employment where the worker is not working full-time and usually works fewer hours.

Form W-2

An IRS tax form used in the United States to report wages paid to employees and the taxes withheld from them.

Gross Wages

The total amount of money earned by an employee before any deductions or taxes are taken out.

Federal Withholding

The practice of an employer withholding income tax from an employee's paycheck and directly paying it to the government.