Which of the Following Is NOT True About Franchising

question 6

Multiple Choice

Which of the following is NOT true about franchising?

• A) Franchisee uses a brand name, trademark, and logo legally owned by the franchisor
• B) Franchisee gets the legal right to engage sell or distribute goods or services
• C) Franchisee uses a marketing plan or system offered by the franchisor
• D) Franchisor has no control over franchisee

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit. It measures how much each unit sold contributes to fixed costs and profit.

Break-Even Point

The level of business operations at which revenues and expired costs are equal.

Cost-Volume-Profit Chart

A chart that graphically shows sales, costs, and the related profit or loss for various levels of units sold.

Total Costs

The sum of all costs associated with the production or acquisition of goods and services, including variable and fixed costs.