The Owner of Your Local KFC Franchise Has Had a Good

question 28

Multiple Choice

The owner of your local KFC franchise has had a good year with rising revenues and reduced operating costs that resulted in a personal income of approximately $100,000.One-third of that was taken for local, state, and federal income taxes, and another third went to pay for mortgage, car payments, food, clothing, and other necessities.What is the remaining third called?

• A)Windfall
• B)Bonus
• C)Discretionary income
• D)Disposable income
• E)Franchising fee

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Definitions:

Revenue Retrieval

The process of collecting and bringing back revenue that might have been lost, underreported, or incorrectly processed.

Resale Revenue

The income generated from selling purchased or previously owned goods to another party.

Recycling Revenue

Earnings derived from the gathering, processing, and sale of recyclable materials.

Processing Cost

The expenses involved in changing raw materials into finished products, including labor, materials, and overhead.