Unlike an Entrepreneur Who Starts a Business from Scratch,a Franchisee

question 73

Multiple Choice

Unlike an entrepreneur who starts a business from scratch,a franchisee is not responsible for:

• A)Hiring employees
• B)Establishing a brand
• C)Obtaining financing
• D)Contracting with suppliers

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Definitions:

Incremental Annual Revenues

The additional revenue a business generates from making specific changes, such as launching a new product or entering a new market, on an annual basis.

Scrap Value

The estimated resale value of an asset at the end of its useful life, often considered in depreciation calculations.

Salvage Value

The expected market value an asset will achieve when it is disposed of after its life cycle.

Payback Period

The length of time it takes for an investment to recover its initial cost out of the cash inflows that it generates.