Which of the Following Is a Strength Associated with Franchising

question 72

Multiple Choice

Which of the following is a strength associated with franchising?

• A)Reduces marketing, promotional and administration costs
• B)Goal conflict does not arise
• C)Reduces levels of conflict within the channel, compared to other channel systems
• D)Combines the strengths of a large sophisticated marketing-orientated organization with the energy and motivation of a locally owned outlet

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Definitions:

Long Run

In microeconomics, a period of time long enough to enable producers of a product to change the quantities of all the resources they employ, so that all resources and costs are variable and no resources or costs are fixed.

Production Plant

A facility or set of facilities where goods are manufactured or assembled primarily from raw materials.

Economic Profit

The return flowing to those who provide the economy with the economic resource of entrepreneurial ability; the total revenue of a firm less its economic costs (which include both explicit costs and implicit costs); also called “pure profit” and “above-normal profit.”

Accounting Costs

The explicit costs of running a business, such as wages, rent, and materials, recorded in the financial statements.