Compared to Building Your Own Chain of Company-Owned Stores, Selling

question 9

Multiple Choice

Compared to building your own chain of company-owned stores, selling franchises is:

• A) faster.
• B) more expensive.
• C) legally simpler.
• D) all of the above.

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Definitions:

Annually Compounded

The process where interest is calculated on both the initial principal and the accumulated interest over the year.

Fair Market Value

A price established by competitive bidding among many buyers and sellers.

Compounded Monthly

Refers to the calculation of interest where the amount earned or paid is added to the principal balance each month, causing future interest calculations to be based on the increased balance.

Perpetuity

A type of annuity that receives an infinite series of identical cash flows.