Hydralicious, a Juice Bar, Has Been Looking to Expand Its

question 57

Multiple Choice

Hydralicious, a juice bar, has been looking to expand its business. The company has given a few entrepreneurs in different locations the license to operate under its name. The entrepreneurs have permission to use the company's reputation and the business model to run operations. The entrepreneurs will be charged a fee, but they will also get a percentage of the profits. Which of the following strategies is Hydralicious most likely to be using?

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

---

Definitions:

Stock Appreciation Rights

A type of incentive or compensation mechanism provided to employees that gives the right to receive a bonus equivalent to the increase in the company’s stock price over a set period.

Compensatory

Refers to something intended to recompense or make up for a loss, injury, or inconvenience.

Stock Option Plan

A compensation strategy businesses use to grant employees the option to purchase company stock at a discounted price in the future.

Market Price

Market Price is the current price at which an asset or service can be bought or sold in a given market.