A Franchisor Discloses a Cautionary Statement That Reads, "Caution: These

question 36

Multiple Choice

A franchisor discloses a cautionary statement that reads, "Caution: These figures are only estimates of what we think you may earn. There is no assurance you'll do as well. If you rely upon our figures, you must accept the risk of not doing so well." This is an instance of ________.

• A) disclosure of earning projections based on actual data
• B) disclosure of earning projections based on hypothetical data
• C) nondisclosure of sales or earnings projections
• D) fraudulent disclosure by the franchisor

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Definitions:

Concentration Ratio

A measurement of the market share of the largest firms within an industry, indicating the level of competition.

Firms

Business entities that engage in commercial, industrial, or professional activities, often distinguished by their legal structure and objectives.

Cutthroat Competitor

A business or firm that aggressively competes in the market, often through pricing strategies, innovation, or marketing, to capture a significant share from rivals.

Lower

To decrease in position, value, or amount.