Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Which of the following is an advantage of franchising to the franchisor?

Rapid expansion with reduced capital investment

Elimination of all business risks

Complete control over all franchisee operations

Direct management of every franchise location

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Verified step by step guidance

Understand the concept of franchising: Franchising is a business model where the franchisor (the owner of the brand or business concept) grants the franchisee (an independent operator) the right to operate under the franchisor's brand and system in exchange for fees or royalties.

Analyze the advantages of franchising for the franchisor: One key advantage is the ability to expand rapidly without requiring significant capital investment, as franchisees typically bear the costs of opening and operating their locations.

Evaluate the incorrect options: 'Elimination of all business risks' is not accurate because franchisors still face risks such as brand reputation and legal issues. 'Complete control over all franchisee operations' and 'Direct management of every franchise location' are also incorrect because franchisees operate independently within the franchisor's guidelines.

Focus on the correct option: The correct advantage is 'Rapid expansion with reduced capital investment,' as franchising allows the franchisor to grow their brand quickly by leveraging the resources and investments of franchisees.

Conclude the reasoning: By understanding the franchising model and the relationship between franchisors and franchisees, it becomes clear why rapid expansion with reduced capital investment is a significant advantage for the franchisor.