How Does Franchising Most Likely Benefit a Franchisor

question 14

Multiple Choice

How does franchising most likely benefit a franchisor?

• A) protects the brand name and logo
• B) provides financial capital for growth
• C) provides knowledge to shareholders
• D) identifies the needs of niche markets
• E) protects the franchisor against economic risk

---

Definitions:

Improvement In Technology

Enhancements or advancements in technology that lead to more efficient processes, products, or services.

Debt-to-Total-Assets Ratio

The debt-to-total-assets ratio is a financial metric that measures a company's leverage by comparing total debts to total assets.

Capital Structure

The manner in which a firm’s assets are financed; that is, the right side of the balance sheet. Capital structure is normally expressed as the percentage of each type of capital used by the firm such as debt, preferred stock, and common equity.

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity.