Why Is Franchising an Attractive Method of Entering a Foreign

question 144

Multiple Choice

Why is franchising an attractive method of entering a foreign market?

• A)because the franchisor does not have to put up any capital to get the business off the ground
• B)because the franchisor has no liability if the business fails
• C)because the franchisee assumes the majority of the capital costs and human resource issues
• D)because there are very few risks involved in franchising
• E)because the franchisee has no liability if the business fails

---

Definitions:

Bank Statement

A summary of financial transactions that occurred over a period of time on a bank account held by a person or business with a financial institution.

Depositor's Account

A banking account that holds funds deposited by an individual or entity.

Balance Per Books

The amount of money reported in a company's financial records or books.

Bank Reconciliation

The practice of ensuring that the figures in an organization's financial records for a cash account are in agreement with the relevant details on a bank statement.