A Franchise Is ______

question 87

Multiple Choice

A franchise is ______.

• A)an easy way to own a business given that enough funds exist to cover the franchise costs and start-up costs. Royalties will be paid from the sales proceeds.
• B)a gift from a large corporation to another to use their name (trademark) but is not a turnkey operation
• C)an illegal form of doing business and is being halted by the federal government
• D)the same thing as network marketing

---

Definitions:

Cash Outflow

Money or financial resources leaving a business, typically for expenses, investments, or other payments.

Cash Equivalents

Short-term, highly liquid investments such as Treasury bills, commercial paper, and money market funds, that are made solely for the purpose of generating a return on temporarily idle funds.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Indirect Method

An approach used in cash flow statements to adjust net income for changes in non-cash items to calculate cash provided by operating activities.