Franchising is essentially the service-industry version of licensing, although it normally involves much longer-term commitments than licensing
Indicate whether the statement is true or false.
TRUE
Franchising is essentially the service-industry version of licensing, although it normally involves much longer-term commitments than licensing. With franchising, the firm licenses its brand name to a foreign firm in return for a percentage of the franchisee's profits. The franchising contract specifies the conditions that the franchisee must fulfill if it is to use the franchisor's brand name.
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Pierre's Ice Cream Company produces ultra-rich ice cream, which it sells in Cleveland, Ohio, and other neighboring places. Last year, its actual return on investment exceeded its target return on investment (ROI) for that fiscal year
The following results were found on its financial statements: Gross revenues: $250,000 Total assets: $500,000 Gross profits: $100,000 Total liabilities: $200,000 Net profits after tax: $ 50,000 Owner's equity: $300,000 What was the actual ROI for Pierre's Ice Cream Company? a. 6.67 percent b. 10 percent c. 22 percent d. 28 percent
When accounting for materials and labor, materials used are recorded in:
A. raw materials inventory. B. work in process inventory. C. finished goods inventory. D. cost of goods sold.