Which of the Following Strategies for Fragmented Industries Grants the Right

question 12

Multiple Choice

Which of the following strategies for fragmented industries grants the right to use the parent's name, reputation, and business model in a particular location or area in return for a fee and often a percentage of the profits?

• A) Chaining
• B) Franchising
• C) Vertical merger
• D) Horizontal merger
• E) B2B

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Definitions:

Profit

The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services.

Direct Materials Cost

The expense associated with raw materials directly incorporated into a finished product.

Break-even Point

Break-even Point is the financial analysis term that indicates when total costs and total revenues are exactly equal, resulting in neither profit nor loss.

Mixed Costs

Costs with both variable and fixed characteristics, sometimes called semivariable or semi-fixed costs.