Which of the Following Is Not One of the Disadvantages

question 126

Multiple Choice

Which of the following is not one of the disadvantages of owning a franchise?

• A) High failure rates
• B) Sacrifice of independence
• C) Difficult to terminate
• D) On-going payments to the parent company
• E) High start-up costs

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Definitions:

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of products sold before other expenses.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding cost of goods sold.

Machine-Hours

A measure of production time used, indicating the number of hours machines are operated in the manufacturing process.