A Number of Independent Drugstores Are Working with a Wholesaler

question 192

Multiple Choice

A number of independent drugstores are working with a wholesaler to obtain economies of scale in buying. They were organized by this wholesaler after a recent meeting to discuss ways of competing with corporate chains. These drugstores are now part of a:

• A) corporate chain.
• B) voluntary chain.
• C) consumer cooperative.
• D) cooperative chain.
• E) franchise chain.

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Definitions:

Private Corporation

A corporation that is created by private persons and does not have government duties.

Certificate of Incorporation

An official document issued by a state government recognizing the formation of a corporation and outlining its basic details.

Authorized to Conduct Business

The status granted to a company or individual that fulfills the regulatory requirements to legally operate in a particular jurisdiction.

De Facto Corporation

A company that operates like a corporation and may be treated as one for legal purposes, despite not having completed formal incorporation steps.