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A Franchisor Discloses a Cautionary Statement That Reads, "Caution: Some

Question 26

Multiple Choice

A franchisor discloses a cautionary statement that reads, "Caution: Some outlets have sold this amount. There is no assurance you'll do as well. If you rely upon our figures, you must accept the risk of not doing so well." This is an instance of ________.


A) disclosure of earning projections based on actual data
B) disclosure of sales projections based on hypothetical data
C) nondisclosure of sales or earnings projections
D) fraudulent disclosure by the franchisor

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