Which of the Following Would Be a Benefit to a Franchiser

question 29

Multiple Choice

Which of the following would be a benefit to a franchiser, such as Jiffy Lube, in expanding into international marketing?

• A) There are no risks involved with allowing a foreign franchisee.
• B) The franchiser does not have to put up a large capital investment.
• C) The franchiser does not have to share its name or operational procedures.
• D) The franchisee pays a set fee every month to the franchiser.
• E) An equal partnership is formed between the franchiser and franchisee.

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Definitions:

Market Price

The amount at which something can be bought or sold on a given market.

Gross Margin Percentage

A financial metric that measures a company's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold (COGS).

Return On Equity

A financial ratio indicating the profitability of a firm in relation to its shareholders' equity, measuring how much profit is generated from the equity.

Return On Equity

calculates the amount of net income returned as a percentage of shareholders equity, measuring a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.