In order to lessen the monitoring problems and opportunistic behavior of a franchisor and a franchisee, franchise contracts:
a. create provisions for high liquidated damages.
b. are complete in all respect.
c. have similar fixed charge and royalty arrangements.
d. include certain flexible clauses.
C
You might also like to view...
In 2008, commercial banks' share of the U.S. credit market changed as a result of
A) commercial banks that experienced significant difficulties resulting from real estate investments applied for status as investment banks. B) investment banks that experienced significant difficulties resulting from real estate investments applied for status as commercial banks. C) increasing returns on real estate investments led commercial banks to expand. D) increasing returns on real estate investments led investment banks to expand.
Refer to Figure 7-4. If consumers paid the full price of medical services, the equilibrium quantity would be
A) 200. B) 500. C) 700. D) >700.