Which of the Following Should Make a Potential Franchisee Suspicious

question 27

Multiple Choice

Which of the following should make a potential franchisee suspicious about a franchiser's honesty?

• A)Claims that the franchise contract is a standard one and that there's no need to read it
• B)An offer of direct financing of a specific element of the franchise package
• C)Not providing detailed operational information until 10 days before signing the contract
• D)Requiring franchisees to spend a certain percentage of profits on advertising

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Definitions:

Aggregate Production

The total output of goods and services produced by an economy over a specified period.

Aggregate Production

The total output of goods and services produced by an economy over a given period.

Aggregate Purchases

The total amount spent on goods and services within an economy at a given period of time.

Unintended Inventory Investment

Occurs when a business accumulates inventory beyond its planned level, often due to lower than expected sales.