Trudy wishes to buy a national franchise. What information is the seller legally required to provide before she buys the franchise?
The Federal Trade Commission requires the seller of the franchise to provide Susan with an offering circular at least 14 business days before any contract is signed or money is paid. This disclosure statement must provide the following information: (1) any litigation against the company for the prior ten years and any claims the company made against franchisees during the prior year; (2) whether the company has gone through bankruptcy proceedings in the prior 10 years; (3) all fees required to be paid; (4) estimates of the required initial investment; (5) what goods must be purchased from the franchisor; (6) the number of franchisees in operation; (7) how many franchisees have gone out of business within the last three years; (8) any competition franchisees will face from other company-owned outlets, including through Internet, catalog, or telemarketing; and (9) whether others can sell in the franchisee's territory and whether it can sell outside its territory. The offering circular must also contain audited financial statements and a sample set of contracts a franchisee is expected to sign.
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All of the following statements are true about inflation except:
a. U.S. companies no longer present financial information adjusted for the effects of inflation. b. In recent years, inflation has been more rampant in Latin America and South America than the rest of the world. c. The FASB developed rules for companies in the United States to use to adjust for inflation. d. The U.S. and Germany adjust their financial statements for inflation.
Which of the following is NOT considered one of the major communication barriers?
a. noise b. emotions c. personality d. channel selection
Arnold is the chief executive officer of Beta Corporation. Arnold's responsibilities include decisions on product development, marketing, and other significant business directions. Arnold is subject to the approval and oversight of Beta's board of directors. Carol is a Beta manager whose duties include the firm's day-to-day hiring, firing, purchasing, and selling. Dave is a Beta salesperson, whose daily activities are controlled by Carol. Erin writes technical manuals for Beta products according to Arnold's instructions and subject to Beta's control, but has no dealings with Beta customers or suppliers. Fred edits the manuals on a contract-per-manual basis and is not otherwise subject to Beta's control. Who is a principal? Who is an agent? Who is an employee? Who is an independent
contractor? What will be an ideal response?
Junk bonds are also called high-yield bonds
Indicate whether the statement is true or false