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6. A well trained people for franchise business will be provided by the Franchisor. Select one: True False 7. Solvency is a long term liquidity and is measured based on ability of the business to pay for long term obligations when they fall due. This is determined by computing for the debt ratioand the equity ratio, these ratios are also called - a. Leverage ratios b. Return on Equity Ratio c. Profit Margin Ratio 8. In analyzing the profitability of the business, the owners or investors will be interested on the ratios stated below except - Drofit Marain

6. A well trained people for franchise business will be provided by the Franchisor. Select one: True False 7. Solvency is a long term liquidity and is measured based on ability of the business to pay for long term obligations when they fall due. This is determined by computing for the debt ratioand the equity ratio, these ratios are also called - a. Leverage ratios b. Return on Equity Ratio c. Profit Margin Ratio 8. In analyzing the profitability of the business, the owners or investors will be interested on the ratios stated below except - Drofit Marain

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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6. A well trained people for franchise business will be provided by the Franchisor. Select one: True False 7. Solvency is a long term liquidity and is measured based on ability of the business to pay for long term obligations when they fall due. This is determined by computing for the debt ratioand the equity ratio, these ratios are also called - a. Leverage ratios b. Return on Equity Ratio c. Profit Margin Ratio 8. In analyzing the profitability of the business, the owners or investors will be interested on the ratios stated below except - a. Profit Margin b. Return on Assets c. Return on Equity d. Working Capital 9. In product distribution franchising, the franchisor provided operations manual and marketing plan. Select one: True False 10. When a franchisee purchase single unit from franchisor, he/she is still allowed to purchase additional single-unit once the original franchise unit begins to prosper. Select one: True False
Transcribed Image Text:6. A well trained people for franchise business will be provided by the Franchisor. Select one: True False 7. Solvency is a long term liquidity and is measured based on ability of the business to pay for long term obligations when they fall due. This is determined by computing for the debt ratioand the equity ratio, these ratios are also called - a. Leverage ratios b. Return on Equity Ratio c. Profit Margin Ratio 8. In analyzing the profitability of the business, the owners or investors will be interested on the ratios stated below except - a. Profit Margin b. Return on Assets c. Return on Equity d. Working Capital 9. In product distribution franchising, the franchisor provided operations manual and marketing plan. Select one: True False 10. When a franchisee purchase single unit from franchisor, he/she is still allowed to purchase additional single-unit once the original franchise unit begins to prosper. Select one: True False
1. A franchise can do extensive advertising in a given market because the cost are spread among many units Select one: True False 2. Single franchise unit is the most complex type of franchise. Select one: True False 3. In Quick Ratio or Acid Test Ratio Analysis, the rule of thumb being followed is- a. 3:1 Ratio b. 2:1 Ratio C. 5:1 Ratio d. 1:1 Ratio 4. A multi-unit franchise is an agreement where the franchisor grants a franchisee the rights to open and operate more than one unit. Select one: True False 5. Franchisors require the franchisees to pay Ads and Royalty from the start of business venture till the contract ends. Select one: True False
Transcribed Image Text:1. A franchise can do extensive advertising in a given market because the cost are spread among many units Select one: True False 2. Single franchise unit is the most complex type of franchise. Select one: True False 3. In Quick Ratio or Acid Test Ratio Analysis, the rule of thumb being followed is- a. 3:1 Ratio b. 2:1 Ratio C. 5:1 Ratio d. 1:1 Ratio 4. A multi-unit franchise is an agreement where the franchisor grants a franchisee the rights to open and operate more than one unit. Select one: True False 5. Franchisors require the franchisees to pay Ads and Royalty from the start of business venture till the contract ends. Select one: True False
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