Franchising Is a Form of Business Ownership in Which a Firm

question 73

Multiple Choice

Franchising is a form of business ownership in which a firm that already has a successful product or service licenses its trademark and method of doing business to another business in exchange for ________.

• A) an initial franchise fee and an ongoing royalty
• B) a one-time franchise fee
• C) an equity position in the new business
• D) an ongoing royalty
• E) an initial franchise fee and an equity position in the new business

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Definitions:

Payment Method

The means or process by which a payment is made and received, which can include cash, checks, credit cards, or electronic transfers.

Audit Trail

A record that shows the chronological sequence of the documentation of financial transactions and changes in an accounting system.

Transactions

Financial activities or operations involving the exchange of goods, services, or funds between two or more parties.

Company Menu

In software applications, this term often refers to a navigational feature that provides access to various functionalities related to company operations.