Andy,an Entrepreneur,plans to Open a Bakery in His Neighborhood

question 63

Multiple Choice

Andy,an entrepreneur,plans to open a bakery in his neighborhood.He realizes that there are no branded bakeries in the locality,even though there are a number of independent bakeries.He approaches Soft Bakes,an international bakery chain,and signs an agreement with them that gives him the right to open a bakery shop that uses Soft Bakes' name and management methods.In this scenario,which of the following business methods does Andy use?

• A) business-format franchise
• B) joint venture
• C) shakeout
• D) vertical integration
• E) delayering

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Definitions:

Anticipatory Breach

An expressed or implied declaration by one party to a contract that they do not intend to fulfill their future obligations under the contract.

Express Breach

A clear and definitive violation of a contract's terms, explicitly stated within the agreement.

Dock Strike

A work stoppage or labor strike involving dock workers, often due to disputes over pay, working conditions, or labor practices.

Mitigate Damages

The legal principle requiring a party suffering loss to take reasonable action to minimize the amount of the loss.