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

Business Organization

Financial Accounting

1. Introduction to Accounting

Business Organization

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Multiple Choice

Cindy owns a 7-Eleven franchise. What is the primary disadvantage of owning a franchise for Cindy?

She is personally liable for all the debts of the franchisor.

She cannot use the franchisor's established brand name or business model.

She is unable to receive any training or support from the franchisor.

She has limited control over business operations and must follow the franchisor's rules.

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Verified step by step guidance

Understand the concept of a franchise: A franchise is a business model where an individual (franchisee) is granted the rights to operate a business using the franchisor's established brand name, business model, and support systems.

Identify the advantages of owning a franchise: Cindy benefits from the franchisor's established brand name, business model, and training/support, which reduces the risks associated with starting a business from scratch.

Recognize the primary disadvantage of owning a franchise: Cindy has limited control over business operations because she must adhere to the franchisor's rules and guidelines, which can restrict her ability to make independent decisions.

Clarify misconceptions: Cindy is not personally liable for the franchisor's debts, and she does have access to the franchisor's brand name, business model, and support systems. These are not disadvantages of owning a franchise.

Conclude the analysis: The correct answer is that Cindy has limited control over business operations and must follow the franchisor's rules, which is the primary disadvantage of owning a franchise.