Idle Production Capacity Refers to

question 17

Multiple Choice

Idle production capacity refers to

• A)the minimum number of customers that a service provider can serve and still remain profitable.
• B)the maximum number of customers that a service provider must serve in order to remain profitable.
• C)the ability of a service provider to redirect its efforts so even when there is no primary demand,employees are still able to meet selective demand.
• D)a situation that occurs when a service provider is available but there is no demand for the service.
• E)a situation that occurs when the primary demand for a service exceeds that number of service deliverers available to meet that demand.

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Definitions:

Product-distribution Franchising

A type of franchising that allows the franchisee to sell the franchisor's products and to use the franchisor's trademark and distribution system.

Turnkey Approach

A service or product solution that is delivered in a complete and ready-to-use condition, requiring minimal effort from the buyer to implement or activate.

Terminate

Refers to bringing an action or process to an end; to conclude or finish.

Franchise Agreement

A legal contract in which a franchisor grants the franchisee the rights to operate a business under the franchisor's model and brand for a specified period.