When you buy a franchise, you, of course, pay the franchisor for the business. How else does the franchisor make money off you, the franchisee?
What will be an ideal response?
Answer: The franchisor charges the franchisee royalties, a percentage of the franchisee's sales.
Explanation: One of the drawbacks of being a franchisee is that you are usually required to share a percentage of your sales with the franchisor in the form of royalties.
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According to Benford's law, the first digit of random data sets will most often begin with which number?
a. 7 b. 1 c. 3 d. 4
Why do employees have different views of their workplace culture?
What will be an ideal response?
Which of the following is/are not true?
a. U.S. GAAP and IFRS require firms to recognize the cost of retirement benefits (pensions, health care, life insurance) as an expense while employees work, not when they receive payments or other benefits during retirement. b. Employers often contribute cash to a trust, an entity administered by the employer, to fund their retirement obligations. c. The accounting records of the trust established to fund the retirement obligations are separate from the accounting records of the employer, and the amounts on the two sets of books usually differ. d. Payments to employees come from both the employer's contributions and investment returns of the trust established to fund the retirement obligations. e. all of the above
The amount of depreciation expense for the first full year of use of a fixed asset costing $65,000, with an estimated residual value of $5,000 and a useful life of 5 years, is $20,000 by the sum-of-the-years'-digits method
Indicate whether the statement is true or false