Defining franchising and discuss the two basic forms of franchising. Give an example of each form.
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A franchise is a continuing relationship in which a franchisor grants operating rights to a franchisee. The franchisor originates the trade name, product, and methods of operation, and grants franchisees the right to operate and sell the product or service in return for revenue. Two basic forms of franchising are product and trade name franchising and business format franchising.
In product and trade name franchising, a dealer agrees to sell certain products provided by a manufacturer or wholesaler. A Michelin tire dealership and a Coca-Cola bottler are examples. In business format franchising, the franchisor "sells" a franchisee the right to use the franchisor's approach to doing business. Fast-food restaurants such as McDonald's and Wendy's are examples of this type of franchising.
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How do heuristics affect a consumer's decision-making process? Give two examples of heuristics you might use when shopping
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Self-esteem tends to develop
A) while we are in the womb. B) based on our interactions with people, events, and things. C) during deep sleep. D) mostly during adolescence.
A corporation is evaluating the relevant cash flows for a capital budgeting decision and must estimate the terminal cash flow. The proposed machine will be disposed of at the end of its usable life of five years at an estimated sale price of $15,000
The machine has an original purchase price of $80,000, installation cost of $20,000, and will be depreciated under the five-year MACRS. Net working capital is expected to decline by $5,000. The firm has a 40 percent tax rate on ordinary income and long-term capital gain. The terminal cash flow is ________. A) $24,000 B) $16,000 C) $14,000 D) $26,000
Describe the three activities of a statement of cash flows. Where does each section fall on the statement and what does it account for? ?
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