Which of the Following Is a Disadvantage of Franchising as a Mode

question 100

Multiple Choice

Which of the following is a disadvantage of franchising as a mode of entry into foreign markets?

• A) The franchiser has to bear development costs and risks associated with foreign expansion.
• B) Franchising leads to undesirable results for service firms.
• C) It is difficult to maintain quality control across foreign franchisees that are distant from the franchiser.
• D) The franchiser has no long-term interests in the foreign country.
• E) It forces a franchiser to take out profits from one country to support competitive attacks in another.

Recognize the relationship between dividend yield, capital gains yield, and total rate of return on stocks.

Comprehend the effect of changes in dividends, growth rates, and required returns on stock values.

Identify the tax implications of dividends for individuals and corporations.

Determine the effects of corporate dividend policies on stockholder wealth.

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Definitions:

Bankruptcy Court

A specialized federal court that handles cases involving bankruptcy filings and related legal matters, providing a legal framework for the settlement of debts.

Bankruptcy Abuse Prevention

Part of the legal measures designed to prevent misuse of bankruptcy laws, including provisions to ensure that filings are genuine and to deter fraudulent or reckless bankruptcy claims.

Chapter 7

A provision of the bankruptcy code in the United States that provides for "liquidation," whereby a debtor's non-exempt assets are sold and the proceeds are used to pay creditors.

Automatic Stay

A self-operating postponement of collection proceedings against a debtor who has filed a petition for bankruptcy.