Which of the Following Statements Is TRUE About Franchising

question 23

Multiple Choice

Which of the following statements is TRUE about franchising?

• A) Franchisees enjoy guaranteed minimum annual revenues based on their territory.
• B) Franchisers encourage franchisees to be independent and creative in running their operations.
• C) Franchisees have relatively lower risk than other small business start-ups.
• D) Franchisees don't need to pay royalty fees to their franchisers.
• E) All franchises restrict the location and number of their franchise locations.

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Definitions:

Trial Balance

An accounting report that lists the balances of all ledgers in two columns (debits and credits) to ensure they are equal.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Assets

Assets refer to resources owned by an individual or organization that have economic value and can be converted into cash or used to generate income.

Existing Balance

Refers to the amount currently in an account prior to any new charges, deposits, or withdrawals.