Which of the Following Is True of Franchises

question 64

Multiple Choice

Which of the following is true of franchises?

• A) They involve a parent company and an independent firm entering into a contractual relationship to set up and operate a business in a particular way.
• B) They involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve competitive position.
• C) They involve a wholesaler contracting with a number of retailers performing channel functions for it.
• D) They involve a high degree of interorganizational planning and management and depend on the presence of a channel leader.

---

Definitions:

Synergy

The creation of a whole that is greater than the simple sum of its parts, often in a collaborative context.

Norming

A stage in team development where members establish norms and standards for behavior and work processes, leading to more cohesive and cooperative efforts.

Induction

The process of introducing a new employee to their job role, the company, and its policies.

Symbiosis

A mutually beneficial relationship between two different organisms living in close physical association.