Which of the Following Is True of Franchising

question 46

Multiple Choice

Which of the following is true of franchising?

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

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Definitions:

Trust Fund

A legal arrangement in which assets are held by a third party for the benefit of another party, often used for estate planning and to manage wealth.

Annual Return

The percentage change in investment value over a one-year period, accounting for any dividends or interest received and capital gains or losses.

Retirement Nest Egg

A retirement nest egg is the amount of savings and investments that an individual has accumulated for their retirement years.

Compounding Of Interest

The process where interest is earned on both the initial principal and on the accumulated interest from previous periods.