Which of the Following Challenges Is Applicable to the Franchisee

question 88

Multiple Choice

Which of the following challenges is applicable to the franchisee in a franchising agreement?

• A) The franchisee must make their own arrangements to acquire initial training and know-how.
• B) The franchisor holds much power, including superior bargaining power.
• C) There is no scope to operate an independent business.
• D) There is decreased likelihood of business success.

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Definitions:

Machine-Hours

A measurement of the amount of time a machine is operated, used in allocating costs or determining production levels.

Molding

The process of shaping a pliable raw material by using a rigid frame or model called a mold.

Assembly

The process of putting together various components or pieces to build a finished product.

Predetermined Overhead Rate

A rate calculated before the accounting period begins, used to estimate the cost of manufacturing overhead for a specific activity base.