All of the Following Are Advantages to the Franchisor Except

question 68

Multiple Choice

All of the following are advantages to the franchisor except

• A) fast and selective distribution of products.
• B) no involvement in national advertising campaigns.
• C) assurance of how the outlets will be maintained and operated.
• D) gains from the franchisee's high motivation.
• E) a freeing up of capital for expansion of goods and services.

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Definitions:

Earnings Per Share

A financial metric that measures the profitability of a company by dividing its net income by the number of outstanding shares of its common stock.

Dividend Yield

A financial metric that illustrates the proportion of dividends a company distributes annually compared to its share price.

Book Value

The net value of an asset as recorded on the balance sheet, calculated as the asset's cost minus accumulated depreciation.

Debt-to-equity Ratio

The debt-to-equity ratio is a financial leverage indicator that compares a company's total liabilities to its shareholder equity.