Which of the following is a disadvantage of franchising?

A. It restricts the franchisor from expanding.
B. It results in the franchisor taking all the financial burden of the franchisees.
C. It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.
D. It does not provide enough incentive to the franchisees to run operations effectively because franchisees are not entrepreneurs.
E. It requires the franchisees to create a new business model and plan strategies.


Answer: C

Business

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Treasury stock that had been purchased for $5,600 last month was reissued this month for $8,500 . The journal entry to record the reissuance would include a credit to

a. Treasury Stock for $8,500 b. Paid-In Capital from Sale of Treasury Stock for $8,500 c. Paid­In Capital in Excess of Par—Common Stock for $2,900 d. Paid-In Capital from Sale of Treasury Stock for $2,900

Business

Which assertions may be tested for the "account balances" category of management assertions?

A. Occurrence, accuracy, rights and obligations, completeness. B. Existence, cutoff, rights and obligations, completeness. C. Existence, rights and obligations, completeness, accuracy, valuation, allocation, and classification. D. Occurrence, rights and obligations, completeness, valuation and allocation.

Business

Step Up Ladders Company provides the following financial information:


Calculate return on investment based on the information given above. (Round your answer to two decimal places.)
A) 9.26%
B) 6.39%
C) 8.06%
D) 7.14%

Business

The term ________ refers to any oral or written words outside the four corners of a written contract.

A. concurrent condition B. parol evidence C. merger clause D. implied condition

Business