A Franchise Is Which of the Following

question 2

Multiple Choice

A franchise is which of the following?

• A)A form of expansion used exclusively in restaurants
• B)An intensive distribution strategy, used to maximize geographical coverage in a market area
• C)A legal contract in which a producer and channel intermediaries agree each member's rights and obligations
• D)All of the above

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Definitions:

Business Judgment Rule

A legal principle that protects corporate directors' decision-making from judicial review as long as the decisions are made in good faith.

Shareholder's Demand

A formal request by a shareholder, typically for corporate information or to take specific actions, under legal rights.

Court Piercing

A legal action where a court disregards the corporate entity and holds its owners personally liable for corporate debts or misconduct.

Derivative Action

A lawsuit brought by a corporation shareholder on behalf of the corporation against a third party.