Which of the Following Statements Is True Regarding Rashi's Inspections

question 4

Multiple Choice

Which of the following statements is true regarding Rashi's inspections of franchisees' kitchens?

• A)Franchise law prohibits such inspections because a franchisee is seen as a separate corporation.
• B)Rashi had the right to do so only if she can establish the existence of customer complaints.
• C)Franchise law prohibits such inspections because a franchisee is seen as a separate partnership.
• D)Rashi had the right to do so only if workers' compensation claims had been filed against the franchisees involved.
• E)Rashi had the right to inspect the kitchens.

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Definitions:

Common Size Percentages

Ratios used in financial analysis that express each line item on a financial statement as a percent of a base amount, facilitating comparison.

Operating Expenses

Costs incurred in the day-to-day operations of a business, excluding the cost of goods sold, such as rent, utilities, and salaries.

Return on Total Assets

Return on Total Assets (ROTA) is a financial ratio that measures a company's net income relative to its total assets, indicating how efficiently the company is using its assets to generate profit.