If a 20 percent reduction in forecast sales would not extinguish a project's profitability, then sensitivity analysis would suggest:

A) the initial sales forecasts were inflated.
B) a reallocation of fixed costs to this product.
C) de-emphasizing that variable as a critical factor.
D) requiring a more detailed sales forecast.

Ans: C) de-emphasizing that variable as a critical factor.

Business

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Indicate whether the statement is true or false

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Which of the following is true of a franchise?

A) The franchisor and franchisee are established as separate legal entities. B) A franchisee does not need a license to use the franchisor's trademark. C) The franchisee does not have access to the franchisor's knowledge. D) A franchise is considered a joint venture.

Business