A Group of Small Sellers Take the Initiative and Organize

question 56

Multiple Choice

A group of small sellers take the initiative and organize a new business entity to carry on wholesaling and possibly some production. This initiative is called a(n) ________.

• A) retailer cooperative
• B) franchise organization
• C) area-based cartel
• D) sponsored voluntary chain
• E) alternate selling channel

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Definitions:

Reimburse

To pay back or compensate for money spent or losses incurred.

Cooperate

The act of working together willingly toward a common goal or purpose, especially in a business or legal context.

Compensate

To provide something, typically money, in recognition of loss, suffering, or injury incurred; recompensation.

S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, allowing income to be passed through to shareholders and taxed at individual rates.