Which of the Following Are Franchises in Which the Franchisor

question 5

Multiple Choice

Which of the following are franchises in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory?

• A) Distributorship
• B) Manufacturing arrangement
• C) Chain-style business operation
• D) Approved business franchise
• E) Acknowledged standards operation

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Definitions:

Raw Materials

The unprocessed or minimally processed materials required to manufacture goods, often natural resources like wood, ores, and oil.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold.

Optimal Amount of Credit

The ideal volume of credit a business can extend to customers that maximizes net profitability while minimizing credit risk.

Total Opportunity Cost

The cost of forgoing the next best alternative when making a decision.