What Annual Rate of Return Is Implied on a $700

question 68

Multiple Choice

What annual rate of return is implied on a $700 loan taken next year when $800 must be repaid in year 3?

• A) 4.55 percent
• B) 4.76 percent
• C) 6.90 percent
• D) 7.14 percent

Grasp the fundamental principles of opportunity recognition, margin analysis, and transaction analysis in franchising.

Understand the processes and strategies for franchise system growth, including the development of target audiences and marketing programs.

Understand the concept of target audience segmentation in marketing.

Comprehend the core aspects of the Franchise Relationship Model (FRM).

---

Definitions:

Extensive Search

The thorough process of seeking information and evaluating multiple options before making a purchase decision, often undertaken for high-involvement products.

Need Recognition

The initial step in the consumer decision process that occurs when a consumer identifies a difference between their current state and a desired state.

Visible or Symbolic

Refers to methods of communication or expression where meanings are either directly observable or represented through symbols.

Social Risk

The potential for an individual to experience loss or damage to their social status, relationships, or respect within a community.