Which Type of Franchising Is the Fastest Way for a Franchisor

question 36

Multiple Choice

Which type of franchising is the fastest way for a franchisor to expand?

• A) Single-unit franchise
• B) Area franchise
• C) Master franchise
• D) Corporate franchise

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Definitions:

Z-score Model

The Z-score model is a financial model that predicts the probability of bankruptcy of a firm based on various balance sheet figures and market measures.

Financial Ratios

Quantitative measures derived from financial statement data used to evaluate a company's financial performance, financial health, and to compare it with other businesses or the industry average.

Default Risk

The possibility that a borrower will be unable to make the required payments on their debt obligations.

Days Payable Outstanding

A financial ratio that measures the average number of days a company takes to pay its suppliers; an indicator of how efficiently a company manages its payables.