Which of the Following Statements About Franchises Is Correct

Multiple Choice

Which of the following statements about franchises is correct?

A) Franchises are privileges granted by a government to use public property in performing services.
B) The acquisition cost of a franchise is always amortized over its legal life.
C) Franchises are privileges granted by a business to sell goods or services under specified conditions.
D) The acquisition cost of a franchise cannot be amortized because its useful life cannot be determined.