Franchising Represents a Popular Version of a Contractual Vertical Marketing

question 17

Multiple Choice

Franchising represents a popular version of a contractual vertical marketing system where:

• A) the franchisee operates a retail outlet using the name and format of the franchisor,for which the franchisee pays a fee plus royalty.
• B) a franchisor provides assistance with locating the business,developing products,advertising and management.
• C) the franchisee can combine entrepreneurship with the advantages of a coordinated marketing channel.
• D) the franchisor has incentives through the royalties to continue to innovate and improve operations.
• E) All of these.

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Definitions:

Harvest

In business, the process of realizing or extracting value from an investment, practice, or venture, often used in reference to the selling or exiting phase.

Value Created

The increase in worth that is generated through the operations or activities of a company or organization.

Public Company

A corporation whose shares are publicly traded on a stock exchange, allowing for public ownership and investment.

Disadvantages

Factors or conditions that put someone or something at a competitive drawback or lower efficiency.