Which of the Following Is True About a Franchise

question 45

Multiple Choice

Which of the following is true about a franchise?

• A) It is one of the least common ways to get involved in a business.
• B) It runs under the franchisee's name and guidance.
• C) The franchise parent receives a flat fee from the franchisee.
• D) It makes use of things like opensource software, while containing costs, staying small, and keeping operations as simple as possible.
• E) It refers to a business in which material or goods are given to another person, but ownership is retained until the goods are sold.

Be able to draw and interpret income-consumption curves and budget constraints in the context of utility-maximizing behavior.

Comprehend how to construct market demand curves from individual demand curves.

Identifying the effects of taxation on consumer choices and welfare.

Understanding the foundations of utility theory, including marginal utility and how it guides consumer choice.

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Definitions:

Standard Costs

Predetermined costs for materials, labor, and overhead, against which actual costs are compared.

Cost of Goods Sold

Expenses directly associated with producing goods a company sells, entailing labor and material costs.

Standard Cost Variances

The differences between actual costs and standard costs in manufacturing, divided into categories such as materials, labor, and overhead.

Administrative Expenses

Overhead or general expenses related to the day-to-day operations of a business that are not directly tied to a specific project.