Which of the Following Is True of the Liabilities of a Franchisor

question 65

Multiple Choice

Which of the following is true of the liabilities of a franchisor and a franchisee?

• A) The franchisor is not liable for any tort arising out of the franchise.
• B) Both franchisee and franchisor are jointly liable for torts committed by either.
• C) Franchisees are only liable on their own contracts.
• D) Franchisors are always liable for the torts of the franchisees.

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Definitions:

Economic Profit Maximising

The process of adjusting the production and sale of goods and services to achieve the highest possible economic profit.

Marginal Revenue Function

A mathematical representation of the change in total revenue resulting from the sale of one additional unit of a product or service.

Marginal Cost Function

A mathematical representation that shows the change in total cost associated with producing one additional unit of output.

Total Revenue

The entire amount of money generated from sales of goods or services before any expenses are deducted.