Answered: A franchise is a contractual…

A franchise is a contractual arrangement under which the franchisor grants the franchisee the right to sell certain products and/or to provide specific services. Select one: O True O False

Business Its Legal Ethical & Global Environment

10th Edition

ISBN:9781305224414

Author:JENNINGS

Publisher:JENNINGS

Chapter13: Contracts And Sales:performance And Remedies

Section13.2: Contract Performance

Problem 4CQ

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4. Under PFRS 15, when shall a franchisor recognize revenue from contingent franchise fee or revenue for a sales-based royalty? a. When the sales of the franchisee occurs. b. When the performance obligation to which some or all of the contingent franchise fees or sales- based royalty has been satisfied or partially satisfied. c. When both A and B events occur. d. When either A or B event occurs.
Which of the following is a transfer of a party's rights under a contract to someone else O Novation O Transfer O Delegation O Assignment
Which of the following is NOT the correct statements regarding forward contracts? I. contain a commitment to the owner, and are standardized. II. contain a commitment to the owner, and can be tailored to the desire of the owner. III. contain a right but not a commitment to the owner, and can be tailored to the desire of the owner. IV. contain a right but not a commitment to the owner, and are standardized. A. I, III, IV B. II, IV C. I, II, III D. I, II
Which of the following is not a condition in identifying the contract with the customer as per IFRS 15? a- Each party's rights with regard to the goods or services concerned can be identified b- It is certain that the entity will collect the consideration to which it is entitled c- The entity and the customer have approved the contract and are committed to perform their contractual obligations d- The payment terms can be identified
For PFRS 15 to apply, a contract with a customer should meet which of the following conditions? I. The contract has been approved by the parties to the contract. II. Each party's rights in relation to the goods or services to be transferred can be identified. III. The payment terms for the goods or services to be transferred can be identified. IV. The contract has commercial substance. V. It is probable that the consideration to which the entity is entitled to in exchange for the goods or services will be collected. A.I, III, IV and V B.I, II, III and IV C.I, II, III, IV and V D.I. II. III and V
Choose the right option All of the following statements are true about letters of intent except for a. Includes an expiration date b. Defines the responsibilities and rights of the buyer and seller while the letter of intent is in force c. Are always legally binding d. Spells out the initial areas of agreement between the buyer and seller e. Includes a “no shop” provision
The contract of sale is a consensual contract. a. True b. False
10.Ijarah is explained by which of the following (A)Contract for usufruct (B)Contract of partnership (C)Contract to sell upon manufacture (D)Contract of agency
12 Under PFRS 15, when shall a franchisor recognizes revenue from its contingent franchise fee, also known as sales-based royalty revenue? Group of answer choices When the franchisor satisfies the performance obligation in relation to the initial franchise fee based on the accounting estimate using historical evidence When the sales of the franchisee occur When the franchisee signs the document evidencing the franchise agreement When the franchisor collected the nonrefundable upfront fee
A promise to grant a license is most likely indistinct if [A] The license is not integral to the functionality of a tangible good. [B] The customer can benefit from the license separate from other related services. [C] This performance obligation is satisfied over the time. [D] The customer can benefit from the license on its own and the license is separately identifiable. [S1] The insurer of an insurance contract becomes the policy holder in a reinsurance contract. [S2] Retrocession is where the insurance risk is transferred from one reinsurer to another reinsurer. [A] both are true [B] both are false [C] S1 is true [D] S2 is true Goods on consignment should be included in the inventory of [A] The consignor but not the consignee, [B] Both the consignor and consignee. [C] The consignee but not the consignor. [D] Neither the consignor nor the consignee. Which of the following is not a criterion required to recognize that a contract with a customer is created? [A] The contracting…
11 The following item indicates that the promise good and service are not distinct, except Group of answer choices The good or service is highly interrelated with other goods or services promised in the contract. A license that the customer can benefit from only in conjunction with related service. The good or service significantly modifies another good or service promised in the contract. A license that forms a component of a tangible good and that is integral to the functional of the good
Which of the following arises when the seller's right to consideration from a customer is conditional upon something other than the passage of time? A receivable A contract asset A contract liability None of these choices