Which of the Following Statements Is Incorrect Regarding Business Format

question 65

Multiple Choice

Which of the following statements is incorrect regarding business format franchises?

• A) Arby's sells business format franchises.
• B) A business format franchises can be very rigid and demanding.
• C) Automotive services and convenience stores are well-known examples of business format franchises.
• D) In a business format franchise, the franchisor provides a formula for doing business to the franchisee along with training and other forms of support.
• E) The business format franchisor obtains the majority of its income from selling its products to its dealers at a markup.

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Definitions:

FDIC

The Federal Deposit Insurance Corporation, a U.S. government agency that provides insurance protection to depositors in US banks.

Mortgage-Backed Security

A claim on payments made on the many mortgages bundled into this financial instrument.

Monthly Payments

Regular payments made monthly, often in the context of loans or mortgages, covering interest and possibly part of the principal.

Dual Banking System

A regulatory framework in which banks are chartered and supervised at both the state and federal levels.