An Evaluation of Franchising Would Conclude That This Type of Arrangement

question 89

Multiple Choice

An evaluation of franchising would conclude that this type of arrangement

• A) has become the dominant form of business organization in the United States because it has many advantages and almost no disadvantages.
• B) appeals to people who want to own a business, but are not comfortable starting a company from scratch.
• C) has a much higher risk of failure than independent companies.
• D) has little chance of success outside the United States because many foreign countries do not allow such arrangements.

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Definitions:

NAV

Net Asset Value, the per-share value of a mutual fund or ETF, calculated by dividing the total value of all the securities in the portfolio, minus liabilities, by the number of shares outstanding.

Front-end Load

A commission or sales charge applied at the time of the initial purchase of an investment, usually used in mutual funds.

Back-end Load

A fee paid by an investor when shares are sold, typically used in mutual funds, where the fee decreases over time the investment is held.

Annual Fees

Refers to the yearly charges associated with having an account, typically found in credit cards or investment accounts, to cover account management services.