Cowtown Creamery,Inc

question 1

Multiple Choice

Cowtown Creamery,Inc.,needs a certain part for its pasteurizing equipment to continue its operations and orders one for $3,000 from Dairy Supplies Company.Cowtown tells Dairy Supplies that it must receive the part by Tuesday or it will lose $10,000.Dairy Supplies ships the part late.Cowtown can recover

• A)$13,000.
• B)$10,000.
• C)$3,000.
• D)$0.

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Definitions:

Franchised Restaurant

A restaurant that operates under the branding and operational guidelines of a larger chain, typically through a licensing agreement.

Sharing Contracts

A type of franchising agreement under which the franchisee pays the franchisor a percentage of revenue rather than a fixed fee.

Marginal Benefit

The additional benefit received from consuming one more unit of a good or service.

Franchising

A business model wherein a business owner licenses their business logo, name, and operating model to an external party or franchisee.