Which of the Following Does the Federal Trade Commission (FTC)

question 60

Multiple Choice

Which of the following does the Federal Trade Commission (FTC) franchise rule require from franchisors?

• A) registration of the disclosure document with the FTC before it is used
• B) full presale disclosures to prospective franchisees nationwide
• C) statement to fully finance the infrastructure necessary to bring the franchisee to the franchisor's standard
• D) disclosure of license agreement made with franchisee that lets the franchisee use the franchisor's service mark

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Definitions:

Bylaws

Regulations set by a corporation or other body to control its own actions and management.

Fiduciary Duties

Fiduciary duties refer to the obligations of loyalty and care that certain individuals, such as trustees or corporate officers, owe to those they serve.

Oppressive Conduct

Actions by major stakeholders in a corporation that unfairly prejudice the interests of minority shareholders.

Articles Of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation, detailing key aspects such as name, purpose, and structure.