Flax Is a Chain of Stores That Carries Several Product

question 68

Multiple Choice

Flax is a chain of stores that carries several product lines including clothing,home furnishings,and household appliances.Each line is operated as a separate department,and employees are available to assist and advise customers in every phase of the shopping process.Flax is most likely a ________.

• A) self-service retailer
• B) category killer
• C) full-service retailer
• D) supermarket
• E) pop-up store

---

Definitions:

Multi-Plant Firms

Companies that operate more than one production facility, often to increase output capacity or serve different geographic markets more efficiently.

Principal-Agent Framework

A theory that explores the challenges in motivations and conflicts of interest between a principal (such as an owner) and an agent (such as an employee) acting on the principal's behalf.

Incentive Compatibility

A concept in economics and game theory that occurs when the incentives align with the desired outcomes, ensuring that participants act in a way that leads to an optimal outcome for all involved.

Supervise

The act of overseeing, directing, or managing activities and tasks of individuals or groups to ensure objectives are met.