A Franchise Contract May Use Only One Type of Business

question 4

True/False

A franchise contract may use only one type of business organization-the sole proprietorship.

---

Definitions:

Combined Turnover

A measure of a company’s ability to use its assets and liabilities effectively to generate sales, combining inventory turnover with accounts receivable turnover.

Fixed Expenses

Expenses that remain constant regardless of the amount of production or business operations, like lease payments or wages.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency or profitability of an investment, calculated as the return relative to the investment's cost.

Return On Investment (ROI)

A financial metric used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments, calculated by dividing net profit by the cost of investment.