Which of the Following Are Franchises in Which the Franchisor

question 18

Multiple Choice

Which of the following are franchises in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory?

• A)Manufacturing arrangement
• B)Chain-style business operation
• C)Approved business franchise
• D)Acknowledged standards operation
• E)Distributorship

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or during the normal operating cycle.

Long-term Investments

Assets held as investments that a company intends to hold for more than one accounting period.

Plant Assets

Long-term tangible assets used in the production process, including machinery, buildings, and equipment, which are subject to depreciation.

Current Ratio

A financial metric assessing a firm’s capacity to settle its current liabilities using its current assets.