Typically,franchise Contracts

question 102

Multiple Choice

Typically,franchise contracts:

• A)are short-term,for 10 years or less.
• B)are heavily weighted in favor of the franchisee due to federal regulation.
• C)do not cover transfer and buyback provisions.
• D)are not negotiated by established franchisers.

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Definitions:

Treasury Stock

Equities that were once sold to investors and later re-purchased by the entity that issued them, effectively reducing the quantity of stocks traded publicly.

Par Value

Par value is a nominal value assigned to a security, such as a stock or bond, at issuance, often used to determine legal capital or accounting value rather than market value.

Stock Dividend

A payment to shareholders in the form of additional shares of stock rather than cash.

Cash Dividend

A cash dividend is a payment made by a company out of its earnings to shareholders in the form of cash.