Which of the Following Is a Disadvantage of Franchising

question 26

Multiple Choice

Which of the following is a disadvantage of franchising?

• A) It restricts the franchisor from expanding.
• B) It results in the franchisor taking all the financial burden of the franchisees.
• C) It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.
• D) It does not provide sufficient incentive to the franchisees to run operations effectively because franchisees are not entrepreneurs.
• E) It requires the franchisees to create a new business model and plan strategies.

Distinguish between different types of receivables and their associated instruments of credit.

Recognize the implications of selling receivables on a company's cash flow.

Calculate the maturity date of notes receivable.

Understand and apply the concept of dishonoring a note.

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Definitions:

Confidence Interval

A span of values calculated from sample statistics, which is likely to embody the value of a hidden population parameter.

Mean

A measure of central tendency which is calculated by adding up all the values in a data set and then dividing by the number of values.

Population Standard Error

The standard deviation of the distribution of a sample mean over multiple samples from the same population.

Mean

The mean is the average of a set of numbers, calculated by dividing the sum of all the values by the number of values.