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2 years ago

Which of the following is NOT true about franchising?

Business

2 answers:

Anna35 [415]2 years ago

8 0

Mrac [35]2 years ago

6 0

Answer: The statement " c. In franchising, the parent firm assumes relatively less risk than with licensing. " is NOT TRUE abaout franchising because In franchising the parent firm assumes relatively more risk tan with licensing, According to the other characteristics mentioned on the franchise agreement, it can be said that the advantage for the franchisor is that it transfers the risk and the cost of sales production to the franchisee, while benefiting from the benefits of the franchisee and this way consolidates its sign and its image; In short, your reputation as a company.

Explanation:

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A company is selling bonds with a face value of $1,000 to raise money for a plant expansion. The bonds pay a coupon rate of 4% p

Ksivusya [100]

Answer:

10.26%

Explanation:

According to the scenario, computation of the given data are as follow:-

Net sales = $760

Face value of bonds = $1,000

Coupon rate = 4% = $1,000 × 4 ÷ 100

= 40

N = Number of Years = 5 annually = semiannually = 5 × 2

= 10 years

We assume, interest rate = 10% = 0.10

P = Coupon Rate ÷ 2 × (PVIFA,Interest Rate ÷ 2%,No. of Years) + Future Value(PVIF,Interest Rate ÷ 2%, No. of Years)

=$40 ÷ 2 × [1 - 1 ÷ (1 + Interest Rate)N] ÷ Interest Rate + Future Value[1 ÷ (1 + Interest Rate) × N]

=$40 ÷ 2 × [1-1 ÷ (1 + 0.10 ÷ 2)^10] ÷ 0.05 + $1,000 × [1 ÷ (1 + 0.10 ÷ 2)^10]

=$20 × [1 - 1 ÷ (1.05)^10] ÷ 0.05 + $1,000 × [1 ÷ (1.05)^10]

=$20 × [1 -1 ÷ 1.6288946] ÷ 0.05 + $1,000 × [1 ÷ 1.6288946]

= 420 × 7.72173 + $1,000 × 0.613913

= $154.4346 + $613.913

= $768.3476

= $768.35

But the given value is 760, so we assume interest rate = 11%

=$40 ÷ 2 × [1-1 ÷ (1 + Interest Rate)^N] ÷ Interest Rate + Future Value[1 ÷ (1 + Interest Rate)^N]

= $40 ÷ 2 × [1 - 1 ÷(1 + 0.11 ÷ 2)^10] ÷ 0.055 + $1,000 × [1 ÷ (1 + 0.11 ÷ 2)^10]

= $20 × [1 - 1 ÷ (1.055)^10] ÷ 0.055 + $1,000 × [1 ÷ (1.055)^10]

= $20 × [1 - 1 ÷ 1.70814446] ÷ 0.055 + $1000 × [1 ÷ 1.70814446]

= $20 × 7.5376255 + $1,000 × 0.5854306

= $150.75 + $585.43

= $736.18

At the Interest rate of 10% the price is more than $760 and at the Interest rate of 1% the price is less than $760. So the required rate lies in between 10% to 11%.

So required rate

Yield To Maturity = Lower Interest Rate + (Difference Between Interest Rate) × Higher Price - Received Price ÷ Higher Price - Lower Price

= 1 0+( 11 - 10) × $768.35 - $760 ÷ $768.35 - $736.18

= 10 + 1 × $8.35 ÷ $32.17

= 10 + 0.26

= 10.26%

7 0

1 year ago

Joel was recently hired as a police officer in his city's police department. As part of employee training, his supervisor trains

Assoli18 [71]

Answer:

On-the job training.

Explanation:

This is explained to be normal emphasized training that working staffs are seen to undergo; especially newly employed staffs, which is a direct training while doing the actual job they are been hired or paid for. A a good and reasonable trainee in this aspect is seen to be appreciative when given this chance to develop knowledge and skills without ever leaving work. In this employee training format, employees are seen to receive your workplace needs, norms, and culture and familiarize with them. Internal job training and employee development bring a special plus. This is why in the scenario above, Joel's supervisor trains him off-site on the use of firearms.

3 0

1 year ago

When weighing your employment options, consider _____. employee benefits pay period taxes taxable income

kkurt [141]

When weighing your employment options, these are very important to consider:
- Employee Benefits
- Pay period
- Taxes taxable income.
Thus, all of these are very important to consider before accepting the job offer.

7 0

2 years ago

Read 2 more answers

On December 31, 2019, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a price of 93.25. Wintergreen received $

Elina [12.6K]

Answer:

June 30, 2020 Bond Interest expense Debit $5,756.25

Discount on Bonds payable Credit $506.25

Cash Credit $5,250

Explanation:

We have to calculate the interest expense. The bond interest expense = Cash payment + bond amortization discount

Given,

Bond price = $150,000

Interest = 7%

Number of period, n = 10 years × 2 (As it is a semiannual bond) = 20

Cash payment for semiannual interest = $150,000 × 0.07 × (1÷2)

Cash payment for semiannual interest = $5,250 (Credit)

Amortized bond discount (discount on bonds payable) = $10,125 ÷ 20 (as it is a semiannual payment and $10,125 is for 10 years)

Discount on bonds payable = $506.25 (Credit)

Therefore, bond interest expense = $5,250 + $506.25 = $5,756.25 (Debit)

6 0

1 year ago

A portfolio consists of the following two funds. Fund A Fund B $ Invested $ 12,000 $ 8,000 Weight 60 % 40 % Exp Return 15 % 12 %

vova2212 [387]

Answer:

Sharpen Ratio = <u> Rp - Rf</u>

standard deviation of portfolio

= <u>13.8% - 3.6%</u>

173.11%

= 0.05892

= 0.059

workings

Return of portfolio = Ra*wa + Rb*Wb

= 15%*0.6 + 12%*0.4

= 9% + 4.8% = 13.8%

Standard deviation of portfolio = square root of variance

= √ stdA²wa² + stadB²wb² + 2wawbcorrAB

= √(24%*0.6)² +(14%*0.4)² + 2*0.6*0.4*1.27

= √207.36% + 31.36% + 0.6096

= √2.9968

= 1.73

= 173.11%

Explanation:

7 0

2 years ago