A Contractual Arrangement Between a Parent Company and an Individual

question 246

Multiple Choice

A contractual arrangement between a parent company and an individual or firm that allows the latter to operate a certain type of business under an established name and according to specific rules is referred to as

• A) a corporate vertical marketing system.
• B) a wholesaler-sponsored voluntary chain.
• C) a retailer-sponsored cooperative.
• D) franchising.
• E) an administered vertical marketing system.

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Definitions:

Internal Control

Systems and procedures designed to ensure the accuracy and reliability of financial reporting, compliance with laws and regulations, and effective and efficient operations.

Voucher Register

A record of vouchers that have been prepared, authorized, and paid; it serves as a chronological record of business transactions.

Petty Cash

A small amount of cash kept on hand in a business for making everyday, minor expenditures.

Cash Reserve

Funds that a company sets aside to meet short-term and emergency funding needs.