What is the name of the small business owner who contracts to buy a franchise?
A) franchisor
B) entrepreneur
C) franchisee
D) franchise
E) intrapreneur
Answer: C
Explanation: The franchisee (the small-business owner who contracts to sell the goods or services) pays the franchisor (the supplier) an initial start-up fee, then monthly royalties based on sales volume.
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Schedule M-3 is similar to Schedule M-1 in that the form is designed to reconcile net income per books with taxable income. However, an objective of Schedule M-3 is more transparency between financial statements and tax returns than that provided by Schedule M-1.
Answer the following statement true (T) or false (F)
At the beginning of the year, your company borrows $20,000 by signing a four-year promissory note that states an annual interest rate of 8% plus principal repayments of $5,000 each year. Interest is paid at the end of the second and fourth quarters, whereas principal payments are due at the end of each year. How does this new promissory note affect the current and non-current liability amounts reported on the classified balance sheet prepared at the end of the first quarter?
A. Increase current liabilities by $1,600; increase non-current liabilities by $20,000. B. Increase current liabilities by $5,400; increase non-current liabilities by $20,000. C. Increase current liabilities by $5,400; increase non-current liabilities by $15,000. D. Increase current liabilities by $400; increase non-current liabilities by $20,000.
As products enter the growth stage of the product life cycle, prices generally begin to stabilize
Indicate whether the statement is true or false a. True b. False
Booking refers to ________
A) seizure and holding under the authority of the law B) the filing of criminal charges against the defendant C) appearance of the defendant before a magistrate D) a formal written accusation in a misdemeanor case