What Is the Difference Between a Public Franchise and a Public

question 275

Multiple Choice

What is the difference between a public franchise and a public enterprise?

• A)A public franchise grants a firm the right to be the sole legal provider of a good or service. A public enterprise refers to a service that is provided directly to consumers through the government.
• B)A public enterprise grants a firm the right to be the sole legal provider of a good or service. A public franchise refers to a service that is provided directly to consumers through the government.
• C)A public enterprise is owned by the public through its holdings of shares of stock in the enterprise. A public franchise is a firm owned by the government.
• D)Both refer to a service provided directly to consumers through the government, but "public franchise" is a term more commonly used in the United States while "public enterprise" is more commonly used in European countries.

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Definitions:

Bank Overdrafts

Happens when the amount taken out of a bank account surpasses what is in the account, leading to a negative balance.

Non-current Assets

Long-term investments or assets that are not expected to be converted into cash or used up within the business cycle of one year or the operating cycle, whichever is longer.

Bank Indebtedness

A financial obligation or debt to a bank, often in the form of loans, overdrafts, or lines of credit.

Current Liability

An obligation that a company is expected to pay within the next year or within the normal operating cycle.