Greg Plans to Open Up Three Hottie Pata?tee Franchises

question 339

Multiple Choice

Greg plans to open up three Hottie Pata?tee franchises in the greater Denver area. He just informed you that he plans to negotiate with the franchisor to eliminate the Big Potato Head that graces the roof of these restaurants. Greg is likely to learn that:

• A) the parent company will give him a start-up cost break for the same amount that it would have to pay for three of these signs.
• B) he is making a smart decision because it is not the sign that will bring customers to his potato bar. It is the wide-selection of toppings and six different ways he will cook potatoes.
• C) it is nonnegotiable due to company rules.
• D) his failure rate will not increase or decrease because franchises traditionally have low failure rates.

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Definitions:

Due Date

The specified date by which an obligation, such as a bill or assignment, must be completed or paid.

Remittance

The process of sending money in payment or as a gift, often referring to funds that are sent by migrants back to their country of origin.

Discount Period

The time frame within which a payment can be made at a reduced rate before the full invoice amount becomes due.

Discount Date

The specified date when a payment is to be made earlier than the due date at a reduced amount, as a motivation for early payment.