According to the Textbook, Which of the Following Is NOT

question 4

Multiple Choice

According to the textbook, which of the following is NOT a cost that is typically associated with buying a franchise?

• A) Advertising fees
• B) Continuing royalty payments
• C) Trademark acquisition fee
• D) Initial franchise fee
• E) Capital requirements

---

Definitions:

Return on Investment

A metric used to assess the profitability of an investment, calculated as the net profit of the investment divided by its cost.

Operating Assets

Resources owned by a business that are used in its day-to-day operations to generate revenue and are expected to provide benefits in the future.

Controllable Margin

A measure of profitability that represents the amount of revenue left after deducting all controllable expenses.

ROI

Return on Investment, a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.