Which of the Following Is a Reason That Individuals May

question 88

Multiple Choice

Which of the following is a reason that individuals may be tempted to buy a franchise business rather than develop their own independent business?

• A) to try his or her own personal innovative product and service ideas in the business
• B) to have the freedom to make decisions
• C) to avoid management training requirements
• D) to obtain a well-known product or service name

Recognize transactions affecting cash flows from financing activities.

Understand how transactions not involving cash are reported in financial statements.

Analyze the impact of changes in working capital accounts on cash flow.

Understand the importance and structures of informative reports.

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Definitions:

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.

Creditor

Someone who has a claim to assets.

Promissory Note Payable

A financial instrument that signifies a written promise by one party to pay a specific sum of money to another party under agreed terms.

360-Day Year

A simplified method of calculating interest for commercial loans or bonds that assumes each month has 30 days, resulting in a 360-day year.