Despite All the Benefits,there Are a Number of Disadvantages to Franchises,such

question 70

Multiple Choice

Despite all the benefits,there are a number of disadvantages to franchises,such as:

• A)the time consumed by the management training and support the franchiser provides.
• B)the cost of national advertising.
• C)strict adherence to standardized operations.
• D)territory limitations.

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Definitions:

Variances

The differences between planned or expected financial outcomes and the actual financial outcomes.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.

Direct Labor

The labor costs directly tied to the production of goods or services, such as wages paid to employees who physically produce a product.

Raw Material

Fundamental components and elements employed at the beginning of the manufacturing or production process.