Which of the Following Statements Best Represents a Contractual Association

question 52

Multiple Choice

Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the system represented by the contract?

• A) corporate chain
• B) franchise
• C) voluntary chain
• D) retailer cooperative
• E) warehouse club

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Definitions:

Rent

A periodic fee paid by a tenant to a landlord for the use of property, such as real estate or equipment.

Interest

The cost of borrowing money or the profit earned from lending money, typically expressed as a percentage of the principal amount per year.

Considerations

Factors or aspects that need to be taken into account before making a decision or evaluation.

Substitute Items

Products or services that can replace or serve as alternatives to another, meeting the same needs or fulfilling the same functions.