Which of the Following Is True Regarding Franchising

question 22

Multiple Choice

Which of the following is true regarding franchising?

• A) Franchising involves enterprises run by the franchisee operating under the trade name and business format of a franchisor
• B) There is only one form of franchising
• C) The franchisee is not obliged to pay the franchisor a fee if their business is not profitable
• D) The franchisee is free to change the specifics dictated by the franchisor

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Definitions:

Accounting Standards for Private Enterprises

Specific accounting guidelines tailored for private companies to ensure transparency, comparability, and clarity in financial reporting.

Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Journal Entries

Recorded transactions in the accounting system that show the effects of financial events on the accounts of a company.

Investment Account

An account held at a financial institution that contains securities, cash, and other investment vehicles.