The franchisee cost that should be capitalised, will be the total amount incurred to acquire the franchisee , which is $100000, the legal fees of $4000 will also be added to the amount as it has been incurred in assciation with the acquisition thus the total cost which should be capitalised will be $100000+$4000 which comes to a total of $104000.
There are lots of ways in which the balloon manufacturer will be able to know who are their other customers apart from those who purchase as stock in the party stores. They could do some research as to what other occasions are balloons useful for. This could be for the school fair as decors or used in the experiment, and many others.
They could also do surveys and other stuffs. By knowing what other purposes the balloons may have, they can design and manufacture the balloons accordingly with the proper material.
The best option to answer the given question is (C) pull strategy. Pull strategy is defined as <u>a strategy where potential customers are stimulated to create a customer demand so product can be distributed through the supply chain due to customer demand. </u>
The opposite is push strategy, where the manufacturer instead promotes its products to wholesalers, and wholesalers promotes the products to retailers, and retailers promote the product to the customers.