Company S, the largest chain of drive-in fast-food restaurant in the U.S. The company knows the value of motivated entrepreneurs as the owner started from doing a job as a milkman. After starting own business with go-getter attitude, Mr. T opened several restaurants making all major decisions. As a result, most of the Mr. T’s early ventures failed but Mr. T didn’t let those initial disappointments set him back. After analyzing, Mr. T decided to expand the area for parking for its customers as well as hired servers for bringing food directly to the customer’s cars. This approach helped a lot in the growth of the business. A local grocer named Mr. C approached for investing in the business but both of them ended up forming partnership . Later on both decided to expand the brand by franchising as they did not want to take any more partners. The business continued growing at a sound speed. Characters in the case: The main characters in the case are Company S, Mr. T and Mr. C. Adequate information: Mr. T, owner of the company S after coming into the partnership with Mr. C decided not to take more partners and started expanding business by franchising. To determine: The difference between franchise and partnership.

Question

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Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 5, Problem 2VC

Summary Introduction

Case summary:

Company S, the largest chain of drive-in fast-food restaurant in the U.S. The company knows the value of motivated entrepreneurs as the owner started from doing a job as a milkman. After starting own business with go-getter attitude, Mr. T opened several restaurants making all major decisions. As a result, most of the Mr. T’s early ventures failed but Mr. T didn’t let those initial disappointments set him back. After analyzing, Mr. T decided to expand the area for parking for its customers as well as hired servers for bringing food directly to the customer’s cars.

This approach helped a lot in the growth of the business. A local grocer named Mr. C approached for investing in the business but both of them ended up forming partnership. Later on both decided to expand the brand by franchising as they did not want to take any more partners. The business continued growing at a sound speed.

Characters in the case:

The main characters in the case are Company S, Mr. T and Mr. C.

Adequate information:

Mr. T, owner of the company S after coming into the partnership with Mr. C decided not to take more partners and started expanding business by franchising.

To determine: The difference between franchise and partnership.

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Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 5, Problem 2VC

Summary Introduction

Case summary:

Company S, the largest chain of drive-in fast-food restaurant in the U.S. The company knows the value of motivated entrepreneurs as the owner started from doing a job as a milkman. After starting own business with go-getter attitude, Mr. T opened several restaurants making all major decisions. As a result, most of the Mr. T’s early ventures failed but Mr. T didn’t let those initial disappointments set him back. After analyzing, Mr. T decided to expand the area for parking for its customers as well as hired servers for bringing food directly to the customer’s cars.

This approach helped a lot in the growth of the business. A local grocer named Mr. C approached for investing in the business but both of them ended up forming partnership. Later on both decided to expand the brand by franchising as they did not want to take any more partners. The business continued growing at a sound speed.

Characters in the case:

The main characters in the case are Company S, Mr. T and Mr. C.

Adequate information:

Mr. T, owner of the company S after coming into the partnership with Mr. C decided not to take more partners and started expanding business by franchising.

To determine: The difference between franchise and partnership.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 5, Problem 2VC

Summary Introduction

Case summary:

Company S, the largest chain of drive-in fast-food restaurant in the U.S. The company knows the value of motivated entrepreneurs as the owner started from doing a job as a milkman. After starting own business with go-getter attitude, Mr. T opened several restaurants making all major decisions. As a result, most of the Mr. T’s early ventures failed but Mr. T didn’t let those initial disappointments set him back. After analyzing, Mr. T decided to expand the area for parking for its customers as well as hired servers for bringing food directly to the customer’s cars.

This approach helped a lot in the growth of the business. A local grocer named Mr. C approached for investing in the business but both of them ended up forming partnership. Later on both decided to expand the brand by franchising as they did not want to take any more partners. The business continued growing at a sound speed.

Characters in the case:

The main characters in the case are Company S, Mr. T and Mr. C.

Adequate information:

Mr. T, owner of the company S after coming into the partnership with Mr. C decided not to take more partners and started expanding business by franchising.

To determine: The difference between franchise and partnership.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 5, Problem 2VC

Summary Introduction