McPherson's,an Ice Cream Joint,recently Entered into an Agreement by Which

question 44

Multiple Choice

McPherson's,an ice cream joint,recently entered into an agreement by which it allowed independent businesspeople at select stores and locations across the country to sell its famous ice creams and milk shakes for a monetary consideration.This agreement created a(n) ________ type of contractual retail association.

• A)corporate chain
• B)voluntary chain
• C)franchise organization
• D)independent intermediary
• E)retailer cooperative

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Definitions:

Accounts Receivable

Money owed by customers to a company for goods or services that have been delivered or used but not yet paid for.

Functional Currency

The primary currency of the primary economic environment in which an entity operates, usually the local currency or the currency of the main revenue-generating activities.

Translation Rate

The exchange rate used to convert the financial statements of a foreign subsidiary into the currency of the parent company.

Functional Currency

The currency of the primary economic environment in which an entity operates, used for reporting financial results.