Which of the Following Statements Is True About Franchising

question 7

Multiple Choice

Which of the following statements is true about franchising?

• A) It is a channel used exclusively for distribution of consumer durable goods.
• B) The franchisee and franchisor are linked by a bond of voluntary cooperation rather binding contracts.
• C) Generally, franchise marketing channels are more closely knit i.e., closer relationships) than conventional channels.
• D) The challenges managing a franchise channel are fundamentally the same as those encountered in conventional channels.
• E) All of the above statements are true.

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Definitions:

Financially Attractive

A characteristic of investments or projects that are appealing due to their potential for positive financial returns.

Project B

A term that typically denotes a specific plan, task, or initiative identified by "B" to distinguish it from other projects.

Net Present Value

A financial metric that measures the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows.

Automated Equipment

Machinery that operates with minimal human intervention, often used to increase production efficiency and consistency.