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McDonald's Operates Through a Franchising System Wherein the Head Office

question 70

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McDonald's operates through a franchising system wherein the head office uses strategic and financial controls to ensure that the franchises are creating the greatest possible value. This is an example of a(an) :


Definitions:

Total Capital

The sum of a company's debt and equity, representing the total funds that a company can use for business operations or investments.

Net Assets

The total assets of a company or organization minus its total liabilities, indicating its financial health.

Partnership

A sanctioned business model involving a partnership of two or more persons who equally divide management duties and profits.

Capital Balances

The amounts recorded in the equity section of a partnership or corporation's balance sheet, representing the owners' stakes in the company.

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