Which of the Following Statements About Franchises Is Correct

question 205

Multiple Choice

Which of the following statements about franchises is correct?

• A) Franchises are privileges granted by a government to use public property in performing services.
• B) The acquisition cost of a franchise is always amortized over its legal life.
• C) Franchises are privileges granted by a business to sell goods or services under specified conditions.
• D) The acquisition cost of a franchise cannot be amortized because its useful life cannot be determined.

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Definitions:

Double-blind

A study design in which neither the participants nor the experimenters know who is receiving a particular treatment, thereby eliminating bias.

Parsimonious

Characterized by extreme unwillingness to spend resources or use unnecessary means; frugal.

Clever Hans

A horse in early 20th century Germany that was believed to have the ability to perform arithmetic and other intellectual tasks, later understood as an example of the observer-expectancy effect.

Psychic Abilities

Claimed abilities that extend beyond the known physical senses, such as telepathy or clairvoyance.