Answer: Option b
Explanation: In simple words, it refers to an arrangement under which one entity allows the other entity to use its procedures and brand name for the business in return of any loyalty or other such benefits.
In the given case, Gerald wants to operate his business globally and not eager to control all of it.
Hence from the above we can conclude that franchising is the best option for Gerald.
Answer:
C. It has high fixed costs relative to variable costs is the correct answer.
Explanation:
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Buffett is concerned about debt in business as they analyse the financial statement of business before acquiring it or investing in it, as it suggest the future financial position of the company and it´s ability to generate consistent earning for the company. They focus on return on equity rather than debt, as regulatory body, credit agencies, and creditors use financial statement to decide on company´s worthiness by evaluating company´s debt and lending term. Debt become obligation for the company and its shows weak accounting and financial position of the company. The warren buffett´s investment policy is to acquire and hold companies for long run, therefore return on equity is a better parameter to evaluate any company.
