Which of the Following Is an Instance of an Area

question 106

Multiple Choice

Which of the following is an instance of an area franchise?

• A)McDonald's franchises an independently owned restaurant to make and sell its products in Pennsylvania.
• B)Pepsi Co.ships Pepsi in the form of a drink concentrate that is prepared and bottled locally in Canada.
• C)Nokia licenses a retail dealer to retail its products in Jacksonville.
• D)Burger King wants to start operating in Mexico and hires a Mexican subfranchisor to sell the franchise on behalf of Burger King.

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Definitions:

Purchasing Power

The value of currency expressed in terms of the amount of goods or services that one unit of money can buy.

Inflation

The measure of growth in the overall price level for products and services, devaluing the currency's purchasing power.

Premium Bond

A bond sold at a price higher than its face value, typically occurring when it has a higher interest rate than the current market rate.

Face Value

The original value of a financial instrument as indicated on the certificate or instrument itself, equivalent to its par value.