Franchising Involves

question 25

Multiple Choice

Franchising involves:

• A) Takeover of an already active firm
• B) A legal agreement that allows one business to be operated using the name and business procedures of another business that already exists
• C) Running a family business
• D) Starting a small business from scratch

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Definitions:

Account

A record summarizing all the transactions pertaining to a particular item in the financial statements.

Annual Rate

The interest rate stated on a yearly basis, often used in the context of savings accounts, loans, or investments to represent the yearly cost or return.

Return

The fiscal upwards or downwards movement in the value of an investment over a defined period, portrayed as a percentage of the investment’s beginning expense.

Investment

The allocation of resources, usually money, in order to gain profitable returns as interest, income, or appreciation in value.