Which of the following does not increase a McDonald's franchisee's financial stake in the success of the operation?
a. Successful owners may get additional restaurants
b. The franchise is valid for 20 years and renewable after that
c. The franchisee can safely ignore the company's standards of quality, pricing, cleanliness, hours of operation, and so on
d. The franchisee must make highly specific investments of money and time
e. The franchisee must have "non-borrowed personal resources" of at least $200,000 in cash
C
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Suppose The United Bank of Glassen has loaned $250 to Mr. Joseph Langdon for his business. Mr. Langdon repays the loan with a check written against his own bank, Rexan Bank. Which of the following is likely to happen as a result of this transaction? a. The reserves at the United Bank of Glassen will fall
b. The reserves at Rexan Bank will increase. c. Checkable deposits at Rexan Bank will increase. d. Rexan Bank will make more loans than before. e. The reserves and checkable deposits of Rexan Bank will decrease.
A temporary decrease in the price of oil would be considered a:
A. short-run supply shock. B. long-run supply shock. C. demand shock. D. The changing price of oil would not affect any of these.