Productivity Is Measured as the Ratio of Inputs to Outputs

question 32

True/False

Productivity is measured as the ratio of inputs to outputs.

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Definitions:

Royalty Fees

Periodic payments made by a franchisee to the franchisor, typically based on a percentage of the franchisee's sales revenue.

Gross Profits

The total revenue from sales minus the cost of goods sold, before deducting operating expenses.

Franchisor

A business entity that grants the right to use its business model and brand to an independent operator, known as a franchisee, in exchange for a fee.

Small Business Ownership

The operation and management of a small enterprise, typically characterized by a limited number of employees and relatively low volume of sales.