What are the risks associated with global franchising?
What will be an ideal response?
The franchisor has limited control over the market operations in the foreign country, its potential profit is reduced because it must be split with the franchisee, and, once the franchise is established, there is always the threat that the franchisee will break away and operate as a competitor under a different name.
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A different set of financial statements usually is prepared for each user
Indicate whether the statement is true or false
The P/E ratio gives an indication of _____.
A. a firm's debt position B. a stock's dividend yield C. the payback period of a stock D. the par value of a stock E. the maturity value of a stock
It is helpful to break down strategy formulation and strategy implementation into five distinct areas.
Answer the following statement true (T) or false (F)
Which of the following statements is CORRECT?
A. A two-stock portfolio will always have a lower standard deviation than a one-stock portfolio. B. A portfolio that consists of 40 stocks that are not highly correlated with "the market" will probably be less risky than a portfolio of 40 stocks that are highly correlated with the market, assuming the stocks all have the same standard deviations. C. A two-stock portfolio will always have a lower beta than a one-stock portfolio. D. If portfolios are formed by randomly selecting stocks, a 10-stock portfolio will always have a lower beta than a one-stock portfolio. E. A stock with an above-average standard deviation must also have an above-average beta.