A Novation Does Not Need to Be in Writing and Can

question 16

True/False

A novation does not need to be in writing and can be implied from the parties' actions. ​

Evaluate methods to incentivize individuals for better performance in sales and operations.

Understand the differences in motivation between franchisees and salaried managers.

Explore the concepts of risk sharing and shirking in franchise relationships.

Grasp the dynamics of franchisee versus franchisor relationships.

---

Definitions:

Operating Activities

These are the day-to-day actions involved in running a business, which include generating revenue, incurring expenses, and producing the fundamental cash flows of the business.

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts.

Operating Cash Receipts

Operating cash receipts are the cash inflows related to a company's primary business operations, such as cash received from selling products or services.

Cash Payments

Cash payments refer to monetary transactions in which cash is used to settle the amount owed for goods or services.