Would-Be Franchisors Ask All of the Following Questions Except One

question 115

Multiple Choice

Would-be franchisors ask all of the following questions except one before expanding overseas:

• A)How tough is the local competition?
• B)Does the government respect trademark and copyrights?
• C)Can profits be easily repatriated?
• D)Can products be easily counterfeited?
• E)Is commercial space available?

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Definitions:

Static Planning Budget

A budget for a specific amount of sales or production that does not change as volume changes.

Activity Variance

The difference between the planned activity and the actual activity in terms of costs or hours.

Flexible Budget

A budget that adjusts or flexes with changes in the volume or activity level, allowing better analysis and control of costs.

Actual Costs

The genuine expenses incurred in the production of goods or delivery of services, measured after they occur.