Normally in a Franchise Operation: ______

question 38

Multiple Choice

Normally in a franchise operation: ______.

• A) both the franchiser and the franchisee will be liable to third persons for contracts that are breached by the franchisee.
• B) only the franchisor will be liable to third persons for contracts that are breached by the franchisee.
• C) only the franchisee will be liable to third persons for contracts that are breached by the franchisee.
• D) neither the franchisor nor the franchisee will be liable to third persons for contracts that are breached by the franchisee.

---

Definitions:

Machine-Hours

The total hours that production machinery is operated within a given period, rephrased as the aggregate operational time of production equipment.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for allocating labor costs to products.

Manufacturing Overhead

Manufacturing overhead encompasses all of the indirect costs associated with the production of goods, such as utilities, maintenance, and the salaries of management.

Manufacturing Overhead

All indirect costs associated with the production of goods, such as utilities, maintenance, and salaries for indirect labor.