Franchise Operations

question 384

Multiple Choice

Franchise operations:

• A) generally have very loose ties between the franchisor and franchise holders.
• B) are expected to decline in the future because the service sector of the economy is failing.
• C) currently account for about a third of all retail sales.
• D) do not form chains.
• E) None of these alternatives is true.

---

Definitions:

Growth Rate

The rate at which a company's sales, earnings, dividends, or other financial indicators increase over a period of time.

EBIT

A profitability metric, Earnings Before Interest and Taxes, includes all company expenses with the exception of interest and tax charges.

Tax Rate

A proportion or rate at which an individual or business is taxed by the government, often expressed as a percentage.