Which of the Following Holds True for Product Distribution Franchising

question 67

Multiple Choice

Which of the following holds true for product distribution franchising?

• A) It provides the franchisee with specific brand named products,which are resold by the franchisee in a specified territory.
• B) It provides an organization through which independent businesses may combine resources.
• C) It is an agreement that provides only the rights to use the franchisor's trade name and/or trademarks.
• D) It is an agreement that provides a complete business format.

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Definitions:

Standard Costs

Costs that are predetermined on a per-unit basis. Standard costs are used as a benchmark for evaluating performance. These costs are often used in or are the output from the budgeting process.

Efficiency Losses

Reductions in economic well-being, reflected by the inability of a market to allocate resources optimally.

Standard Costs

The predetermined expenses for the production of a product or operation of a service, used as a baseline to measure performance.

Direct Labor Wage Variance

The difference between the expected cost of direct labor for production and the actual cost incurred.