Franchising Is Essentially the Service-Industry Version of Licensing,although It Normally

question 88

True/False

Franchising is essentially the service-industry version of licensing,although it normally involves much longer-term commitments than licensing.

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Definitions:

Acid-Test Ratio

A stringent indicator of whether a firm has enough short-term assets to cover its immediate liabilities without selling inventory.

Current Ratio

A financial metric assessing a firm's capacity to settle short-term debts using its existing assets.

Liquidity Ratios

Liquidity ratios are financial metrics used to assess a company's ability to meet its short-term obligations by comparing its liquid assets to its current liabilities.

Equity Multiplier

A financial ratio that measures a company's total assets financed by shareholders' equity, indicating the level of leverage used by the company.