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saveliy_v [14]
3 years ago
12

Discuss the likely drawback to a start up business of setting up and running as a franchise operation

Business
1 answer:
Aliun [14]3 years ago
6 0
Buying a franchise means entering into a formal agreement with your franchisor.
Franchise agreements dictate how you run the business, so there may be little room for creativity.
There are usually restrictions on where you operate, the products you sell and the suppliers you use.
Bad performances by other franchisees may affect your franchise's reputation.
Buying a franchise means ongoing sharing of profit with the franchisor.
Franchisors do not have to renew an agreement at the end of the franchise term.
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____________ risk refers to the danger of changes in buying power during times of rising or falling prices.
natali 33 [55]

The risk refers to the danger of changes in buying power during times of rising or falling prices is known as inflation.

<h3>What is a risk?</h3>

Risk refers to the uncertainty or probability of an accidental event that will affect the decision-making of an individual or organization. In business the higher the risk, the higher the profit is achieved.

Inflation is defined as the ratio at which prices rise over time. Inflation is usually defined as a wide measure of price increases or increases in the cost of living in a place affecting its citizens.

Inflation diminishes the purchasing power of individuals which leads to high risk for investors who paid a fixed rate of interest on the investment. Most concerned about inflation-reducing returns are those individuals who invested in cash equivalents.

Learn more about risk, here:

brainly.com/question/17284407

#SPJ1

3 0
2 years ago
How many of the following statements about testing are true?
Rus_ich [418]

Answer:

The answer is E) Testing for controlling would most often involve scenario, integration and user acceptance testing.

Explanation:

In quality control, there involve a series of tests: Scenario testing, Integration testing and User acceptance testing.

Scenario testing is done once there a functionally that can be tested is developed. Under scenario testing, integration of functions is not done yet but it is possible to test the performance of the interface developed to ascertain how an end user will use it.

Integration testing involves testing the functionally of a combined unit assembled from individual units to see how well they perform as an integrated unit.

User acceptance testing is doe at the final phase to check how well it can perform in real time. This is meant to check user friendliness and ease of access.

8 0
3 years ago
. Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontroll
GalinKa [24]

Answer:

B. Controllable costs

Explanation:

There are some costs that are expended by a company during the cost of carrying out their business operations. These costs such as labor costs and marketing budgets are incurred because the company has full authority over them. They are costs that can be altered in short term based on a business decision.

In other words, controllable costs are those costs or expenses that can be influenced by those who are saddled with the responsibilities of incurring them.

5 0
3 years ago
F 1What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1
Llana [10]

Answer:

When the bond is sale at premium, it means the market rate is lower than coupon rate. So investor purchase the bond a higher price until the bond yield equal the market rate

If sold at discount, the market rate is higher than coupon rate. This means it's sold below face value to increase the bond yield to market rate.

YTM if market price is 887 =  10.7366190%

YTM if market price is 1,134.2= 7.1764596%

Explanation:

For the YTM we can calculate an estimated using the following formula:

YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}

Where:

C= coupon payment 1,000 x 9% = 90

F= face value of the bonds = 1000

P= market price = 887

n= years to maturity = 10

YTM =  10.7366190%

YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}

C= 90

F= 1000

P= 1134.2

n= 10

YTM = 7.1764596%

A more precise answer can be achieve using excle or a financial calculator.

7 0
3 years ago
Mining Corporation bought land for $330,000 (residual value $22,000) that is estimated to yield 660,000 pounds of a removable na
likoan [24]

Answer:

35933

$46,200

Explanation:

Depletion = amount of pounds extracted x depletion factor

depletion factor  = (cost of asset - salvage value) / estimated yield

(330,000 - 22,000) / 660,00 = 0.467

2021 = 0.467 x 99,000 = $46,200

6 0
3 years ago
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