There Are Two General Types of Franchises

question 65

Multiple Choice

There are two general types of franchises:

• A) product-format franchises and distribution franchises.
• B) business-format franchises and manufacturing franchises.
• C) business-format franchises and general service franchises.
• D) business-format franchises and venture franchises.
• E) business-format franchises and product-distribution franchises.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from revenues.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share of the profits.

Earnings Per Share

A company's profit divided by the number of common shares outstanding, indicating the profitability on a per-share basis.

Stockholders' Equity

Represents the residual value of assets minus liabilities, indicating the ownership interest of shareholders in a company.