Subway,Denny's,and Circle K Are Examples of _____ Because the Franchisee

question 59

Multiple Choice

Subway,Denny's,and Circle K are examples of _____ because the franchisee buys the right to use the franchisor's approach to doing business.

• A) trade name franchising
• B) product franchising
• C) business format franchising
• D) franchise wholesaling
• E) logistic franchising

---

Definitions:

Bureaucratic

Pertaining to a system of administration characterized by strict policies, procedures, and hierarchy.

Short-run Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced, calculated when some factors of production are fixed.

Factory

A manufacturing facility where goods are produced or assembled.

Efficient Scale

The level of production at which a company can produce its products at the lowest average cost per unit, maximizing efficiency.