Which of the Following Is True of Franchising

question 21

Multiple Choice

Which of the following is true of franchising?

• A) It provides an effective blending of skill decentralization and operational centralization.
• B) The franchisee provides market knowledge, capital, and personal involvement in management.
• C) Foreign laws and regulations are usually hostile toward franchising.
• D) It is an important form of horizontal market integration.
• E) The franchiser has little control on marketing of the products at the point of final sale.

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Definitions:

Net Loss

The result when a company's expenses exceed its revenues during a specified period, indicating a negative profit.

Accumulated Depreciation

Accumulated Depreciation represents the total amount of depreciation expense that has been recorded over time for long-term assets, reducing their book value.

Bonds Payable

Bonds payable are long-term debt instruments issued by corporations or governments to raise capital, where the issuer agrees to pay back the principal along with interest at a specified date.

Cash Dividends

Profits distributed by a corporation to its shareholders in the form of cash.