Which Statement About Franchising Is Most Likely True

question 21

Multiple Choice

Which statement about franchising is most likely true?

• A) Franchisees provide downstream marketing channel functions for a manufacturer.
• B) Franchisees are company subsidiaries of a vertically integrated manufacturer.
• C) Franchisors assume the identity of franchisees to convey vertical integration.
• D) Franchisors provide downstream marketing channel functions for franchisees.
• E) Franchising first developed in the U.S. after WWII in the soft drink industry.

---

Definitions:

Interest Rates

The cost of borrowing money or the return for investing money, typically expressed as an annual percentage of the principal.

Present Values

The present value of an anticipated amount of money or series of cash flows, using a designated rate of return.

Revenues

The total income generated by a company or entity from its business activities, such as sales of goods or services.

Interest Rates

The cost of borrowing money or the return for investing money, usually expressed as a percentage.