In Terms of Global Business Strategy and Structure, a Franchise

question 90

Multiple Choice

In terms of global business strategy and structure, a franchise company will use a policy of

• A) centralized production, accounting, marketing, human resources, with strategic management.
• B) dispersed production, accounting, human resources, with centralized strategic management, and marketing.
• C) dispersed production and marketing, with centralized accounting, human resources and strategic management.
• D) dispersed production, marketing, and human resources, with centralized strategic management and finance/accounting.

---

Definitions:

Nondeductible Items

Expenses or items that cannot be subtracted from gross income to reduce taxable income according to tax laws.

Partnership Interest

An ownership share in a partnership that entitles the holder to a portion of the entity's profits and losses.

FMV

Fair Market Value, the price at which property would sell on the open market between a willing buyer and a willing seller.

Partnership Basis

The amount invested in a partnership by the partners, adjusted for additions, withdrawals, and the individual's share of partnership profits or losses.