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Al Also Suggested Another Way Jenna Could Finance Her Expansion

Question 223

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Al also suggested another way Jenna could finance her expansion.He described setting-up a chain of AutoMotion Garages by selling the rights to use AutoMotion's name,business model,garage design and service ideas to others who would like to own a similar shop.These individuals would pay AutoMotion an initial fee and monthly royalties based on earnings.Al is suggesting that Jenna set up a:


A) Joint venture.
B) Franchise arrangement.
C) C corporation.
D) Master limited partnership.

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