According to the Text,a Franchise System That Is ________ Old

question 45

Multiple Choice

According to the text,a franchise system that is ________ old has the greatest chance of success.

• A) 6 months
• B) 1 year
• C) 2 years
• D) 3 years
• E) 4 years

---

Definitions:

Fixed Expenses

Recurring costs that do not fluctuate with the level of production or sales volume, such as lease payments or salaries.

Contribution Margin Percentage

A measure showing what percentage of sales revenue is available to cover fixed costs and contribute to net income, calculated as (Sales - Variable Costs) / Sales.

After-Tax Profit

The profit a company has left after paying all its taxes.

Tax Rate

The proportion of income that the government taxes an individual or business.