Which of the Following Is True Regarding Franchising

question 15

Multiple Choice

Which of the following is true regarding Franchising?

• A)Franchising is a principal entry mode for the service industry.
• B)The franchisor provides the franchisee with advertising and sales promotion support.
• C)The franchisee receives the right to use the franchisor's brand name and all related trademarks.
• D)All of the above are true.

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Definitions:

Operating And Financial Policies

Operating and financial policies are the strategies and guidelines that a company follows in its daily activities and financial decision-making processes.

Return On Excess Cash

A measure of how effectively a company is using its idle cash, beyond what is needed for its immediate operating needs, to generate returns.

Sustain Stock Price

Efforts or strategies employed by a company to maintain or increase the market value of its shares over time.

Gaining Control

The process of acquiring the ability to direct the affairs of an entity, often through ownership of a majority of its voting shares.