Stores That Are Owned and Operated as a Group by a Single

question 161

Multiple Choice

Stores that are owned and operated as a group by a single organization are called _____.Under this form of ownership,administrative and purchasing tasks are handled by the home office.

• A) home base stores
• B) independent retailers
• C) franchisees
• D) chain stores
• E) strip centers

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Definitions:

Order Costs

Expenses incurred when ordering and receiving goods, which may include costs related to processing, shipping, and handling.

Economic Order Quantity

The ideal order quantity a company should purchase to minimize its inventory costs including holding, shortage, and order costs.

Carrying Cost

This is the total cost of holding inventory, including storage, handling, insurance, and opportunity costs.

Fixed Cost

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance.