What Format of Ownership Combines the Advantages of Owner-Managed Businesses

question 31

Multiple Choice

What format of ownership combines the advantages of owner-managed businesses with the efficiency of centralized decision making in chain store operations?

• A)franchise
• B)retail chain
• C)full-line discount stores
• D)single-store establishment
• E)wholesale-sponsored voluntary cooperative chain

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Definitions:

Intangible Assets

Assets that have value to a business but are not visible.

Long-Term Equity

Investments in stocks or other equity instruments that are intended to be held for a period longer than one year for potential appreciation in value.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received on credit.

Noncompete Clause

A provision often included in a contract to purchase a business that restricts the seller from entering the same type of business within a specified area for a certain amount of time.