Normally in a Franchise Operation: ______

question 38

Multiple Choice

Normally in a franchise operation: ______.

• A) both the franchiser and the franchisee will be liable to third persons for contracts that are breached by the franchisee.
• B) only the franchisor will be liable to third persons for contracts that are breached by the franchisee.
• C) only the franchisee will be liable to third persons for contracts that are breached by the franchisee.
• D) neither the franchisor nor the franchisee will be liable to third persons for contracts that are breached by the franchisee.

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Definitions:

Total Equity

The sum of the ownership interest in a corporation, including common and preferred shares.

Stock Repurchase

The process by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares.

Cash Dividends

Payments made by a corporation to its shareholders out of its profits or reserves in the form of cash.

Tax Laws

are the legal rules and regulations governing how individuals, businesses, and other entities are taxed by the government.