Which of the Following Statements Is Incorrect Regarding Product and Trademark

question 16

Multiple Choice

Which of the following statements is incorrect regarding product and trademark franchises?

• A) Rather than obtaining a royalty or franchise fee, the product and trademark franchisor obtains the majority of its income from selling its products to its dealers or distributors at a markup.
• B) General Motors establishes product trademark rather than business format franchises.
• C) Product trademark franchises are by far more popular than business format franchises.
• D) Product and trademark franchisees are typically permitted to operate in a fairly autonomous manner.
• E) A product trademark franchise typically connects a single manufacturer with a network of dealers or distributors.

---

Definitions:

Complexity

Refers to the state or quality of being intricate or complicated, often used to describe problems, systems, or situations with many interconnected parts.

Simultaneously Engage

The act of participating in multiple activities or processes at the same time.

Negotiation

A dialogue between two or more parties aimed at reaching a consensus or solving a disagreement.

Common Reasons

Typical or widely shared causes or motives behind actions or situations.