Which of the following is NOT an example of the costs involved with starting up a franchise?
A) equipment and rental fees
B) insurance and license fees
C) franchise fee
D) employee training
E) royalties
Answer: E
Explanation: E) Startup costs include franchise fees, and costs for legal services, insurance, licenses, inventory, equipment, rent, signage, construction, landscaping, and employee training and salaries. You pay royalties—a percentage of your sales—only after you have started generating income.
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The NPV method assumes that cash flows are reinvested at:
A) the government's prime rate. B) the internal rate of return. C) the company's discount rate. D) an average of the internal rate of return and the discount rate.
For a misrepresentation to be actionable as fraud in the inducement, it must be a misrepresentation of opinion
a. True b. False Indicate whether the statement is true or false
In a self-service store a sale cannot occur until the goods are paid for
Indicate whether the statement is true or false
In an advertisement for Planters peanuts and trail mix, a peanut wearing a monocle and a top hat and called Mr. Peanut represents the product quality. Mr. Peanut appears in all of the advertisements for Planters. This is an example of how a company can use a _____ executional style.
A. product symbol B. lifestyle C. spokesperson D. fantasy E. scientific evidence