​In a Franchising Relationship

question 5

Multiple Choice

​In a franchising relationship

• A)​the franchisor is the local businessman or businesswoman
• B)the corporate brand owner contracting with local operator is the franchisor
• C)the local operators are the franchisors
• D)​the corporate brand owner contracting with local operators is the franchisee

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Definitions:

Legal Factors

Elements of the law that influence or affect business operations and strategy, including regulations, compliance issues, and legal disputes.

Economic Factors

These are variables and conditions that affect the economic performance of markets and businesses, such as inflation rates, unemployment levels, and interest rates.

Voting Stock

Shares that grant the holder the right to vote on company matters, such as the election of the board of directors.

Book Value

An accounting term denoting the portion of the company held by the shareholders at accounting value, not market value.