Franchising Refers to

question 132

Multiple Choice

Franchising refers to

• A) a contractual agreement between multiple retailers sharing the same business mission to operate with a consistent business model to not only achieve enhanced buying power but also increase customer loyalty.
• B) a contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules.
• C) purchasing the name, branding, and raw materials from one organization and transferring it to another.
• D) a practice whereby one firm's marketing channel is used to sell another firm's product.
• E) selling an idea to a larger company and letting it do all the manufacturing, distribution, and marketing.

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Definitions:

Capital Goods

Long-lasting goods acquired by businesses to produce goods or services, encompassing items like machinery, tools, and buildings.

Consumer Goods

Products that are purchased and used by individuals for personal or household consumption.

Production Possibility Frontier

The Production Possibility Frontier is a curve depicting all maximum output possibilities for two goods, given a set of inputs.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods, given a set of inputs.