All categories

1 year ago

A franchisee pays a sum of money to a franchisor called a _____ for the right to open a franchise.

1 answer:

8 0

A franchisee pays a sum of money to a franchisor called a master franchise agreement for the right to open a franchise.

Franchise royalties are usually accumulated via your franchisor on a monthly basis. Like advertising fees, those charges are based totally on a percentage of your sales. but there is one principal difference; the odds are higher.

The Federal exchange fee governs franchising felony requirements inside America. below the FTC Franchise Rule, this is referred to as the initial charge. different regular prices are royalties and advertising costs.

The franchise we buy will become an intangible asset that goes in your enterprise stability sheet and is recorded as a noncurrent asset, consistent with Reference for business. this is generally written off as a fee to your balance sheet and impacts your backside line when it comes to taxation.

Learn more about franchisees here:-brainly.com/question/16826168

#SPJ4

You might be interested in

Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes t

Marianna [84]

Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes that the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity: futures prices are negatively correlated with interest rates.

This is further explained below.

<h3>What are interest rates?</h3>

Generally, the fraction of a loan that is charged as interest to the borrower is often stated as a yearly percentage of the loan outstanding.

"lower interest rates encourage people to spend money on house upgrades"

In conclusion, Bea Moran would want to construct a long derivatives position in a commodity that she will need to buy in a little over half a year's time. Moran notes that the price of the six-month forward contract is now at 45.20, while the price of the six-month futures contract is currently at 45.10. Because of this disparity, it is quite probable that the prices of futures contracts for this commodity have an inverse relationship with interest rates.

Read more about interest rates

brainly.com/question/13324776

#SPJ1

4 0

2 years ago

Crane Corporation is reviewing an investment proposal. The initial cost is $103,400. Estimates of the book value of the investme

navik [9.2K]

a) The cash payback period for Crane Corporation's investment proposal is 3 years.

b) The annual rate of return for the investment is as follows:

Year 1 = 10% ($10,700/$104,500 x 100)

Year 2 = 19% ($13,100/$69,300 x 100)

Year 3 = 33% ($14,000/$42,100 x 100)

Year 4 = 82.5% ($17,400/$21,100 x 100)

Year 5 = 232% ($17,900/$7,700 x 100)

c) The net present value of the investment by Crane Corporation is $30,643.

<h3>Data and Calculations:</h3>

Target rate of return = 11%

Year Initial Cost and Book Value Annual Cash Annual Net

Flows Income

0 $104,500

1 69,300 $45,900 $10,700

2 42,100 40,300 13,100

3 21,100 35,000 14,000

4 7,700 30,800 17,400

5 0 25,600 17,900

The cash payback period is <u>3 years</u> ($104,500 - $45,900 - $40,300 - $35,000).

<h3>Net Present Value:</h3>

Year Annual Cash Flows PV Factor Present Value

0 -$104,500 1 -$104,500

1 $45,900 0.901 $41,356

2 $40,300 0.812 32,724

3 $35,000 0.731 25,585

4 $30,800 0.659 20,297

5 $25,600 0.593 15,181

Net Present value = $30.643

Learn more about the payback period and NPV at brainly.com/question/16999673

#SPJ1

6 0

1 year ago

Type the correct answer in the box. Spell all words correctly.

ra1l [238]

Answer:

The answer is Monopoly

Explanation:

Monopoly describes the situation which supply of a service or commodity is controlled by a specific enterprise or person. The situation gives rise to what is known as a mopolisitic market structure.

A monopolistic market, like the term implies, describes a market that is dominated by just one company. In other words, it is just a single company that offers services and products to the public.

Being the only supplier, the company can raise prices, restrict output and enjoy super-normal profits.

4 0

3 years ago

20. Which of the following is not a difference between monopolies and perfectly competitive markets? a. Monopolies can earn prof

Naily [24]

Answer:

The correct answer is option c.

Explanation:

A perfectly competitive market has a large number of buyers and sellers. The firms are price takers and the price is determined by the market forces. Thus the monopoly firms face a horizontal demand curve. This horizontal line represents price, average revenue, and marginal revenue. The equilibrium is obtained where price, (average revenue and marginal revenue) is equal to marginal cost. There is no restriction on entry and exit of firms in the long run. That's why firms face a break-even in the long run.

While in a monopoly market there is a single firm. This firm fixes price higher than marginal cost. The demand curve of the monopoly is a downward sloping showing relatively elastic demand. A monopoly firm can earn profits in both the short run as well as the long run.

6 0

3 years ago

Old Man Smith died owning a property with an estimated value of $500,000. He never married and died without leaving a will. Smit

vazorg [7]

Answer:

The property would be given to the next available direct relation of his who happens to be his sister. This is because, most property are shared among siblings. Since Smith's sister is one of his sibling, she is entitled to receive the property.

Explanation:

7 0

4 years ago