Answer:
Franchising.
Explanation:
Franchise is a license consisting of a contractual arrangement between a parent company (franchiser or franchisor) and another (franchisee), that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.
One of the main advantages of a franchise is that, franchisers such as Starbucks do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee. For instance, Starbucks could give the authority to an individual or group of people which would enable them to do the same business in another geographical location.
Hence, this type of relationship best describes franchising because Starbucks worked with local operators while collecting initial setup fees and then royalties on store revenues generated by the franchisees as it entered other Asian countries.
Answer:
$0, income statement s not affected.
Explanation:
The purchase and resale of treasury stock does not affect the income statement. When a company's treasury stock is resold, additional paid-in capital increases (if the stock were sold at a price above cost) or decreases (if the stock were sold at a price below cost).
Answer:
$340,000
Explanation:
A sunk cost is a cost that has already been incurred and cannot be affected by any decision that someone makes. E.g. once you pay an expense like rent, the cost will not be recovered or altered by any decision that you make. Sunk costs is simply money that has been spent and cannot be recovered.
Answer:
A
. payroll taxes.
Explanation:
Payroll taxes are imposed on the employers or employees of the company. In the examples of the question, the costs except for the payroll taxes are all paid by the company. Besides, payroll taxes are also not taxed on the company instead of on the employees' wages, which is funded by them. That is why all the examples are start-up costs except the payroll taxes
