Franchising Is an Advanced Form of Licensing in Which the Franchisor

question 34

True/False

Franchising is an advanced form of licensing in which the franchisor allows the franchisee the right to use an entire business system in exchange for compensation.

---

Definitions:

Selling and Administrative Expenses

the combined total of all costs associated with selling a company’s products and managing the company, excluding direct costs of producing goods or services.

Period Costs

Expenses that are not directly tied to product production and are recorded as expenses in the period in which they are incurred, such as selling and administrative expenses.

Value Chain

The full range of activities that businesses go through to bring a product or service from its conception to its end use by consumers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.