Which of the Following Statements Is Incorrect Regarding Product and Trademark

question 44

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) Ford Motors establishes product trademark rather than business format franchises.
• C) Product trademark franchises are 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:

Accountability

Generally involving such concepts as responsibility, liability, and other terms associated with the expectation of account-giving; the acknowledgment and assumption of responsibility for one’s actions.

Responsibility

The duty to deal with something or to take care of something or someone.

Liability

Legal responsibility or obligation, often referring to the state of being responsible for something, especially in financial or legal contexts.

Scope of Practice

Principles of self-boundaries of the profession.