Question

Which of the following is true of a franchise?
It is the international term for all small businesses.
It is a type of novelty organization.
It is an organization that provides loans to start small businesses.
It is a prepackaged business bought, rented, or leased from a company.

Answer 1

Answer:

It is a prepackaged business bought, rented, or leased from a company.

Explanation:

Franchises and Licenses are rights that a company or a government grants an entity to deliver a product or service under specified conditions . Many organizations grant franchise and license rights- e.g Pizza Hut. The cost of franchises and licenses are debited to a Franchises and licenses asset account and are amortized over the lives of agreements.