Mc-King Chicken Brian Decided to Open a Local Franchise of the Well-Known

question 120

Multiple Choice

Mc-King Chicken
Brian decided to open a local franchise of the well-known Mc-King Chicken, a fast-food restaurant. Before he took the initiative to open the franchise, he tried to weigh all the advantages and disadvantages. He decided, based on his research and understanding, that it would be beneficial to open a local fast-food restaurant.
Mc-King has become quite successful domestically, and now it is exploring the possibility of opening franchises internationally. The company hired an international agency to help it learn what and what not to do. After the agency met with the managers of Mc-King a few times, the Mc-King management decided it would go ahead with its decision to expand internationally.
-Refer to Mc-King Chicken. The international agency advising Mc-King would have made which of the following recommendations?

• A) Be aware that less money is needed to fund international operations.
• B) Remember that strong local management is needed to keep an international franchise going.
• C) Plan for the local competition to be weak.
• D) Assume that customers everywhere need or want what the franchise offers.
• E) Expect hiring, training, and marketing practices to be identical in all countries.

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Definitions:

Accounts Receivable

Amounts due from customers for goods or services provided by a firm, yet to be paid.

Common-sized Income Statement

An income statement in which each line item is expressed as a percentage of sales revenue, allowing for easy comparison across periods or companies by standardizing the scale.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods, or of different companies during the same period.