General Education Development (GED) Practice Exam

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Prepare for the GED Exam. Test your skills with a dynamic quiz featuring diverse questions and detailed explanations. Sharpen your preparation and excel in your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Which option correctly lists the catering businesses in order of average monthly profit from largest to smallest when considering the franchise fee?

A, B, C, D
C, D, A, B
B, C, A, D
C, B, A, D

The correct answer is: B, C, A, D

The correct response indicates that the average monthly profit of the catering businesses, when considering the franchise fee, is ranked from largest to smallest in the sequence of B, C, A, and D. Understanding why this order is accurate requires analyzing the components involved. The average monthly profit is crucial as it reflects the financial success of each business after accounting for costs, including franchise fees. B ranks the highest in profit, suggesting it has a strong business model, effective management, or a popular menu that drives sales. C follows, which could imply it has good profitability margins but perhaps higher operational costs or competition that constrains its overall earnings compared to B. A, while still profitable, does not match the performance of B and C, likely indicating either higher costs or a less profitable product offering. Finally, D being last suggests it either struggles with sales, has a high franchise fee reducing its net profit, or has other financial challenges. This ranking reflects a keen analysis of profitability factors, justifying why B, C, A, and D is the proper sequence when taking the franchise fee into account.