There Are Three Variations of Contractual Systems: Retailer-Sponsored Cooperatives, Franchise

question 252

Multiple Choice

There are three variations of contractual systems: retailer-sponsored cooperatives, franchise systems, and _________.

• A)service-oriented voluntary chains
• B)channel-dominated voluntary chains
• C)distributorship cooperatives
• D)wholesaler-sponsored voluntary chains
• E)inverted-channel franchising

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Definitions:

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stock.

Constant Growth

A model assuming that dividends or any other type of cash flow grow at a constant rate indefinitely.

Debt/Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity.

Weighted Average Cost Of Capital

The average rate that a company is expected to pay to finance its assets, weighted according to the proportion of equity and debt in its capital structure.