An Unrealized Gain

question 78

Multiple Choice

An unrealized gain:

• A) is recorded when a trading security is sold for more than its cost.
• B) is recorded when a trading security is sold for less than its cost.
• C) is recorded when the fair value of the trading security is more than its cost.
• D) is recorded when the fair value of the trading security is less than its cost.

---

Definitions:

Chain-style Business

A business model where multiple outlets are owned, franchised, or managed under a single brand or corporation.

Franchisor's Standards

Regulations and expectations set by the franchisor that the franchisee is required to follow to maintain the consistency and quality of the brand.

Franchise

A licensed privilege to operate a business under a larger company's brand and operational model, often including a specific geographic area.

Franchise Rule

A regulation designed to govern the sale of franchises, requiring franchisors to provide potential franchisees with disclosure documents containing vital details about the franchise.