I believe the answer is:
- What can go wrong?
This question is asked to find out the potential risk that may occur after purchasing the product.
- What is the likely return?
This question is asked to find out potential benefit from consuming the product
-Is the risk worth the return?
<span>The purchase should be made only if the potential benefit would outweigh potential risk
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The company should accept the special order because it will get an additional profit of $4,000 ($12,500 - $7,500 - $1,000) for the special order. This additional profit amount can be acquired by separating the effect from the special order on each cost and sales of the company's business. The sales should increase by $12,500 ($5 x 2500 unit) amount if the job is taken and the variable cost should increase by $7,500 ($3 x 2500 unit). Lastly, the fixed cost should increase by $1,000 (the new machine).
A franchise business can be started with purchasing a franchise rights, these rights are usually sold by chain businesses however there are some small businesses who also provide franchise.
<h3 /><h3>What is a Franchise?</h3>
A franchise is a legal right to run the operations of a business under the same name, however there are some factors that needs to be maintained these factors are mentioned in the agreement and must be met by the franchisee at all times.
In return for the franchise there is a lump sum payment which entitles the acquirer/ franchisee for the use of legal name of that business, also these rights are for a certain number of years.
For the duration of the franchise agreement the franchise owner is responsible for all the advertisement expenditure.
When starting a new business it is recommended that a franchise is acquired if they have no past experience of the business.
Learn more about Franchise at brainly.com/question/27158354
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You start a business letter with your adress
