Which of the Following Is Most Likely a True Statement

question 48

Multiple Choice

Which of the following is most likely a true statement about the McDonald's franchise format?

• A) McDonald's provides franchisees with general guidelines about job responsibilities but allows franchise managers to determine serving specifications.
• B) Most McDonald's franchisees are responsible for finding a restaurant site and constructing the new building using their personal capital.
• C) McDonald's provides franchisees and managers with extensive training about running a McDonald's franchise.
• D) McDonald's franchisees receive occasional assistance from headquarters when sales are slow.
• E) McDonald's franchisees are strongly encouraged to make menu changes to suit local tastes.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold (COGS), indicating the profit made before deducting operating expenses.

Construction Costs

Expenses related directly to the construction of a building or infrastructure project, including materials, labor, and overhead.

Estimated Costs

Projected expenses related to the manufacturing of a product, execution of a project, or delivery of a service.

Provision for Loss

A Provision for Loss is an amount set aside in the accounts to cover identified but not yet realized losses or expenses.