A Recent Study Reports That the Success Rate of Franchisees

question 15

Multiple Choice

A recent study reports that the success rate of franchisees increases when a franchise system ________.

• A)requires franchisees to have prior industry experience
• B)requires franchisees to actively manage their operations
• C)has built a strong brand name with training programs to improve knowledge and skills
• D)All of the above increase the rate of success.

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Definitions:

Parent's Cash Flows

The cash inflows and outflows directly associated with the primary operating entity in a group of companies or conglomerate.

AASB 121

Refers to the Australian Accounting Standards Board provision dealing with the effects of changes in foreign exchange rates.

Exchange Differences

Variance arising from translating foreign currency transactions or foreign operations into the reporting currency.

Presentation Currency

The form of money used to express the financial records of a company.