Author Question: What is the purpose of ratio analyses of financial statements? a. to gauge the franchise's profit ... (Read 16 times)

swpotter12 · **on:** Jun 29, 2018

What is the purpose of ratio analyses of financial statements?
a. to gauge the franchise's profit potential
b. to asses the franchisor or franchisee's management skills
c. to determine the success of the franchise in meeting its overall objectives
d. to measure the exact worth of a franchise

Question 2

Any service organization can use its physical environment as a marketing tool.

Indicate whether the statement is true or false

tashiedavis420 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

C. The general purpose of ratio analyses of financial statements is to determine the success of the franchise in meeting its overall business objectives. These objectives are to meet current obligations and to meet interest costs and repayment of long-term obligations while earning a specific return on invested funds.

Answer to Question 2

T