Exam 31: Franchise and Special Forms of Business

Which of the following statements is true of a joint venture?

James Rodriguez,a composer,allows the makers of a popular television show titled "Back in the Day" to use multiple songs from his album on the television show for a price.In this instance,James Rodriguez is the ________.

________ are ideas that make a franchise successful but that do not qualify for patent or copyright protection.

JK Developers and KL Designs,who are experts in architectural engineering,form a business agreement whereby they agree to work together for two years,in order to complete the design of a planetarium.This is an example of a ________.

According to the FTC franchise rule,a franchisor that makes sales or earnings projections based on hypothetical examples must disclose the assumptions underlying the estimates.

The area franchisee is also called a ________.

An ________ refers to an agency that arises when a franchisor creates the image that a franchisee is its agent when in fact an actual agency does not exist.

Franchisors charge a monthly or annual ________ fee for having experts from the franchisor help the franchisee better conduct business.

My-Wear Inc.is an apparel retailer based in San Francisco.It operates through a franchise named KL Apparels Ltd.in Santa Clara.After about six years of operation,My-Wear Inc.cancelled the franchise with KL Apparels without any notification.The franchise period specified in the contract has not expired and the franchisee had met all standards stated by the franchisor.This constitutes a ________.

A(n)________ is an amount paid by the franchisee to the franchisor for the continued use of the franchisor's trade name,property,and assistance that is often computed as a percentage of the franchisee's gross sales.

The party who grants a license is known as the ________.

The Federal Communications Commission (FCC)is a federal government agency that is empowered to enforce federal franchising rules.

In a(n)________ franchise,the franchisor manufactures a product and licenses a retail dealer to sell the product to the public.

Concreate Development requires architects to design its latest venture-a 64-storeyed skyscraper.It makes a business arrangement with Excellent Architecture and acquires four architects on contract for the ongoing project.This is an instance of ________.

Which of the following mandatorily requires a license to be operational and legal?

A joint venture is an arrangement in which two or more business entities combine their resources to pursue a single project or transaction.

A(n)________ fee is a lump-sum payment for the privilege of being granted a franchise.

If Venusia Records wanted to enter a foreign country to operate its music stores,it could grant a franchise to a foreign company operating in the foreign country,which would then choose the individual franchisees in that country.This is a form of a(n)________ franchise.

A licensee is the party to whom a license is granted.

Intrepid Creations is a product design institute which provides educational courses in package design.It manages to acquire the right to use simulation software from Marco Software for a payment of $2,000 a year.There is no clause of expiration on this arrangement and the right to access the software is renewed annually.Which of the following kinds of business arrangements does the aforementioned scenario indicate?