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2 years ago

Cody Barnett enjoys several advantages as a Sonic franchisee. Which of the following is NOT an advantage of franchising?

Business

2 answers:

Alenkasestr [34]2 years ago

7 0

<u>Option E is correct. The management regulation is not an advantage of franchising.</u>

Further Explanation:

Franchise: Franchising is a form of business where the franchisor (who has an established brand name) gives the right to the franchisee to use its trademark, products, services, and also provide training and assistance for operating the business. The advantages of the franchising are:

• Marketing and Management assistance: The training is provided by the franchisor to the franchisee on how to carry on the business and also provide marketing assistance.

• Personal ownership: The franchisee is the owner of the business in the territory of which is he /she purchased the rights. He pays the royalty for the right purchased

• Nationally recognized name: The franchisor's business usually has a global presence, so it is nationally recognized.

• Financial advice and assistance: The franchisor provides financial assistance and advice to the franchisee so that the business can maintain its brand name.

• Lower failure rates: Since the franchise has a global presence and brand position, so chance of failure is lower.

<u>Therefore, the management regulation is not a benefit of franchising because the franchisee cannot change the way management is being done, although the business is owned by the franchisee. </u>

Learn more:

1. Learn more about the management resource activity

brainly.com/question/10700933

2. Learn more about the management charactistics

brainly.com/question/10649225

3. Learn more about customer relationship management

brainly.com/question/6657146

Answer details:

Grade: High School

Subject: Business

Chapter: International business

Keywords: Cody Barnett, Sonic franchise, management assistance, personal ownership, lower failure rate, management regulation, nationally recognized name.

solong [7]2 years ago

3 0

Management regulation is not an advantage of franchising

When a larger company gives another firm a license or a permit to use their intellectual property such as brand name, trademark, designs, and others, it is a common practice called franchising

<h2>Further Explanation</h2>

It is simply an agreement between two business partners, whereby a manufacturer allowed another firm or individual, the rights to make use of its brand name, trademark, and designs

In franchising, the company that gives a license to another firm is known as the franchiser whiles the entity or individual that is allowed to use the company intellectual property is known as the franchisee

The franchisee obtains a franchise from the franchiser by paying a certain amount of money as a startup fee and the franchiser on its part also provides necessary training and guidance to the franchisee regularly. One of the common practices among the larger company is franchising as it promotes business expansion.

Some of the advantages of franchising include

It widens the business network of the franchiser
It enables franchisers to expands its distribution chain within a short period
It gives feedback to franchisers concerning how popular their products are performing in the market, what the customers want and many more

Some characteristics of franchising include

Policies
Training
Royalty
Limited period
License

LEARN MORE:

Management regulation brainly.com/question/11237752
What are the advantages and disadvantages of investing in a franchise for both the franchisee and franchisor brainly.com/question/1780353

KEYWORDS:

franchising
advantage
franchisee
management regulation
agreement

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2 years ago

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Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting D

andreyandreev [35.5K]

Answer:

(E) 225,000; 195,000

Explanation:

Provided information,

Method used = FIFO

Provided units in opening as well as closing are 100% complete with respect to materials.

Opening = 50,000 units for $70,500 which were 100% complete with respect to material

During the month = 225,000 units for $342,000

Since both are 100 % complete for materials

Equivalent units for materials for the month = 225,000 = 225,000 units

Provided for conversion cost

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= 50,000 $\times$ 60 % = 30,000 units during the month

225,000 units newly added this month out of which 150,000 units are completed

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Therefore correct option is

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2 years ago

FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one th

Strike441 [17]

Answer:

a. $684

b. $480.6

c. 63 shares

Explanation:

a. The calculation of cash flow under the current capital structure is given below:-

Earning per share = Net income ÷ Shares

= $26,220 ÷ 6,900

= $3.8 per share

Cash flow = Earning per share × Stock shares

=$3.8 × 180 shares

= $684

b. The calculation of cash flow be under the proposed capital structure is given below:-

Value = $59 × 6,900

= $407,100

Under the capital structure suggested the company would collect new debt in the amount of:

Debt = 0.35 × $4071,00

= $142,485

Which means the amount of the repurchased shares will be:-

Shares repurchased = $142,485 ÷ $59

= $2,415

The Company will have to make an interest payment on the new debt under the new capital structure. The net income with the interest payment will be:-

Net income = $26,220 - 0.10 × $142,485

=$11,971.5

This means that the EPS will come under the new capital structure

Earning per share = $11,971.5 ÷ 4,485 shares

= $2.67 per share

Since all profits are paid out as dividends, the shareholder receives:-

Shareholder cash flow = Earning per share × Stock shares

= $2.67 × 180 shares

= $480.6

c. The shareholder would sell 35% of their shareholdings

= Shares × Debt percentage

= 180 × 35%

= 63 shares

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1 year ago

A registered investment company whose share price fluctuates independently of its net asset value is most likely

bazaltina [42]

Answer:

Closed-End Fund

Explanation:

Close-End Funds raise money through an IPO and then its stocks are traded on secondary markets. There are no new issuance of stocks, nor there are repurchases of stocks, therefore, the price of their stocks is determined by the market. That is why their stock price will be based on its net asset value, but it fluctuates and is not dependent on it.

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2 years ago

If Bob and Judy combine their savings of $1,260 and $975, respectively, and deposit this amount into an account that pays 2% ann

Andrew [12]

Answer:

The account balance after 4 years will be $2,420.

Explanation:

First we need to add Bob and Judy's amount to find the total amount that will be deposited. (1260+975)=2,235.

Now we will break up the annual interest into monthly interest because it will be compounded monthly. 2/12=0.166.

Then we will break up the 4 years into months also because the interest is compounded monthly. 4*12=48

Now we use the formula for compound interest

Final amount = Principal*(1+R)^N

Principal = 2,235

R= 0.166% or 0.00166

N= 48

We put these values into our formula

2,235*(1+0.00166)^48

=2,420

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1 year ago