Independently owned stores that band together to act like a chain are referred to as:
A)A contractual system
B)A franchise
C)An administered system
D)A vertical integration

Question

Quizplus · Accepted Answer

Independently owned stores that band together to act like a chain by using a contractual system have the ability to maintain their independence while also being able to benefit from the advantages of acting like a larger chain, such as joint marketing efforts and bulk purchasing power. A franchise, on the other hand, involves a more hierarchical relationship between the franchisor and franchisee, with the franchisor having more control over the franchisee's business operations. An administered system refers to a type of franchise system where the franchisor has even greater control and may provide more ongoing support to the franchisees. Vertical integration refers to a company owning and controlling multiple stages of its supply chain, usually from raw materials to distribution.

Independently Owned Stores That Band Together to Act Like a Chain