In Addition to the Regular Monthly Payment of a Percentage

question 55

Multiple Choice

In addition to the regular monthly payment of a percentage of gross sales to her franchisor, Lee is required to submit a smaller percentage for advertising costs.She is willing to do this because:

• A)otherwise she cannot operate her franchise.
• B)she receives a discount on the cost of her inventory.
• C)Lee's budget is too small for her advertising to be effective.
• D)the franchisor promotes the business both locally and nationally, reinforcing the brand name.

---

Definitions:

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability.

Year 2

Typically refers to the second year of a specific time frame or series, such as a company's second fiscal year.

Return On Investment

A metric utilized to assess an investment's efficiency or profit in comparison to its expenditure.

Breakdown Theory

Suggests that social movements emerge when traditional norms and patterns of social organization are disrupted.