Which of the Following Is True of a Franchise

question 40

Multiple Choice

Which of the following is true of a franchise?

• A) The franchisor and franchisee are established as separate legal entities.
• B) A franchisee does not need a license to use the franchisor's trademark.
• C) The franchisee does not have access to the franchisor's knowledge.
• D) A franchise is considered a joint venture.

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Definitions:

Cash Flow Statement

A financial document that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment activities, and financial investments.

Worksheet

An accounting tool used for planning and preparing financial statements, consisting of columns for trial balances, adjustments, adjusted trial balances, and sums.

Journalized

Journalized is the process of recording transactions in a journal, detailing the financial activities and changes in accounts in a chronological order.

Cash Flows

This refers to the total amount of money being transferred into and out of a business, affecting the company's liquidity.