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.

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Definitions:

Middle-of-the-Road

A course of action or opinion that avoids extremes and adopts a moderate or balanced viewpoint.

Median Voter

A theoretical concept in political economy and public choice theory that suggests policies are determined by the preferences of the median voter when voters are positioned along a single policy dimension.

Voter Type

Refers to categories of voters distinguished by specific characteristics such as political preference, age, or socioeconomic status.

Arrow Impossibility Theorem

A principle stating that no rank-order voting system can be designed that always satisfies three fairness criteria: non-dictatorship, unrestricted domain, and independence of irrelevant alternatives.