Which of the Following Is Imposed Upon a Franchisor That

question 67

Multiple Choice

Which of the following is imposed upon a franchisor that violates the Federal Trade Commission (FTC) franchise disclosure rule?

• A) FTC criminal action on behalf of the franchisee
• B) loss of intellectual property to the franchisee
• C) suspension of all business operations in the area
• D) an injunction against further franchise sales

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Definitions:

Employee Salaries

Regular payments made to employees for their services, which may be fixed amounts as per employment contracts, not directly tied to the volume of output they produce.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Planning Budget

A budget prepared before a period begins based on management's objectives and estimated revenues and expenses.

Manufacturing Overhead

All indirect costs associated with manufacturing, including maintenance, electricity, and salaries of supervisors.