If You Are a Franchisor and You Charge a Royalty

question 28

Multiple Choice

If you are a franchisor and you charge a royalty of 5% on revenue and you have franchisees that have revenues of $1 million, $2 million, $1.5 million, and $2.5 million, how much would you earn in royalties?

• A) $3,500,000
• B) $3,000,000
• C) $300,000
• D) $350,000

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Definitions:

Mirror-Image Perceptions

Mutual views often held by conflicting people, as when each side sees itself as ethical and peaceful and views the other side as evil and aggressive.

Oxytocin

a hormone that plays a role in social bonding, sexual reproduction, and during and after childbirth.

Testosterone

A steroid hormone primarily found in males, responsible for the development of male sexual characteristics and reproductive functions.

Dopamine

A neurotransmitter associated with movement, attention, learning, and the brain's pleasure and reward system.