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

Which of the following statements is true regarding how a franchise can be formed?

A franchise can only be formed by merging two existing corporations.

A franchise can be formed by purchasing the rights to operate a business under an established brand and system.

A franchise can only be formed by government decree.

A franchise is formed automatically when a sole proprietorship is registered.

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Verified step by step guidance

Understand the concept of a franchise: A franchise is a business model where an individual or entity (franchisee) purchases the rights to operate a business under the name, brand, and established system of another company (franchisor).

Review the options provided in the question and eliminate incorrect statements: For example, a franchise is not formed by merging two corporations, nor is it formed automatically when a sole proprietorship is registered. Additionally, franchises are not created by government decree.

Focus on the correct statement: A franchise is formed by purchasing the rights to operate a business under an established brand and system. This involves a legal agreement between the franchisor and franchisee.

Consider the practical process of forming a franchise: The franchisee typically pays an initial fee and agrees to follow the franchisor's operational guidelines, which may include marketing, training, and product/service standards.

Conclude by emphasizing the importance of understanding the franchise agreement and the responsibilities of both parties involved in the franchise relationship.