Regarding the Issue of Control of Franchisees by Franchisors,which of the Following

question 8

Multiple Choice

Regarding the issue of control of franchisees by franchisors,which of the following is most accurate?

• A) Firms selling heavy industrial machinery are most likely to use the franchise model to control product distribution.
• B) The business franchise model is always an appropriate model to ensure a high degree of control, regardless of the industry.
• C) Companies like Proctor & Gamble frequently use the franchise channel model for distribution of consumer goods.
• D) Service providers that wish to maintain a high degree of control over channel members are likely to use the franchise channel model.
• E) The desired degree of control of franchisees by franchisors is not relevant to the decision by franchisors to use the franchise channel model.

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Definitions:

Hobbes

Thomas Hobbes was a 17th-century English philosopher known for his social contract theory, outlined in his work "Leviathan," where he argued that individuals consent to give up some freedoms in exchange for security provided by a sovereign.

Boston Tea Party

A political protest by the American Colonists against the British government in 1773, where they boarded British ships and dumped tea into Boston Harbor as a protest against the Tea Act.

East India Company

A historic British trading company, formed in the 17th century, which played a major role in the economic and political control of India until the mid-19th century.

Monopoly

An economic condition in which a single company or entity has exclusive control over a particular market, lacking competition.