Trudy wishes to buy a national franchise. What information is the seller legally required to provide before she buys the franchise?
What will be an ideal response?
The Federal Trade Commission requires the seller of the franchise to provide Trudy with a Franchise Disclosure Document (FDD) at least 14 calendar days before any contract is signed or money is paid. This disclosure statement must provide the following information:The history of the franchisor and its key executivesLitigation with franchiseesBankruptcy filings by the company and its officers and directorsCosts to buy and operate a franchiseRestrictions, if any, on suppliers, products, and customersTerritory-any limitations (in either the real or virtual worlds) on where the franchisee can sell or any restrictions on other franchisees selling in the same territoryBusiness continuity-under what circumstances the franchisor can terminate the franchisee and the franchisee's rights to renew or sell the franchiseFranchisor's training programRequired advertising expensesA list of current franchisees and those that have left in the prior three yearsA report on prior owners of stores that the franchisor has reacquiredEarnings information is not required; but if disclosed, the franchisor must reveal the basis for this informationAudited financials for the franchisorA sample set of the contracts that a franchisee is expected to sign
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What is a disadvantage of using résumés as a source of information about job applicants?
A. It is a relatively expensive method of gathering information. B. A résumé is biased in favor of the employer. C. The content of the résumé is controlled by the applicant. D. Review of résumés is least valid when the content of the résumés is evaluated in terms of the elements of a job description. E. It does not allow applicants to highlight accomplishments.
[APPENDIX] Which of the following is true concerning a sole proprietorship?
a. It is a separate legal entity. b. It may have more than one class of stock outstanding. c. It is owned by one or more persons. d. The separate entity concept applies.
Milton-Normand Inc. obtains a return of 13.5% from total invested capital of $790.6 million. Calculate the net profit it generates
A) $325.3 million B) $159 million C) $84.7 million D) $233.5 million E) $106.7 million
All of the following are steps in an IT audit except
a. substantive testing b. tests of controls c. post-audit testing d. audit planning