Answer:
Who is the franchisor? McDonald's
Who is the franchisee? C.B. Management Inc.
In a franchise relationship, the <u>franchisee</u> is economically dependent on the <u>franchisor's</u> business system.
The franchise relationship is defined by the <u>contract</u>.
Did C.B. Management, Inc.’s failure to make a payment due more than thirty days earlier constitute a breach of the franchise contract? YES
Why? A) the contract provided McDonald's could terminate the contract when a payment was more than 30 days late.
Did the contract provide that the acceptance of a late payment waived McDonald's right to terminate for late payments? NO
What does an implied covenant of good faith and fair dealing require? That the parties act <u>reasonably</u>.
Did McDonald's act of accepting late payments in the past transform McDonald's right to terminate into a discretionary decision governed by the standard of good faith and fair dealing in the future? NO
Why? Which one of these reasons is not correct? B) the actions of the parties control this issue.
A court would likely find for <u>McDonald’s</u>
Answer:
Notes payable(due in 13 to 24 months)-L
Notes payable (due in 6 to 12 months)-C
Notes payable (mature in five years)-L
Current portion of long-term debt-C
Notes payable(due in 120 days) -C
FUTA taxes payable -C
Accounts receivable-N
Sales taxes payable-C
Salaries payable-C
Wages payable-C
Explanation:
A liability is a current one if it is due between today and the next one year(12 months),however any liability whose payment date is beyond one year is classified as long-term liability.
Answer:
It is "following an expansionary monetary policy".
Explanation:
When the central bank uses expansionary monetary policy, money supply increases and the interest rates decreases, this will lead to no change in aggregate demand. It also affects the value of the currency and that is lowering its value but there is improvement in growth of domestic economy.
Answer: Primary product dependency is a large constraint on economic growth and development within LEDCs due to the fact that commodities and their producers are highly susceptible to price fluctuations.
Explanation:
Primary product dependency discourages investment in other aspects of the economy. Concentrating on primary products does not always help the long-term development of an economy because it can contribute to a lack of investment in other aspects such as education and industrial production.
