McDonalds--like most other fast-food chains--prefers to franchise rather than directly operate its retail outlets.An advantage of franchising over vertical integration is:
A) Franchising permits superior coordination of retail activities with upstream activities
B) Franchising subjects the operators of retail outlets to "high-powered" incentives
C) Franchising permits more effective quality control of the retail outlet
D) Franchising avoids some of the transaction costs that can arise with owning and operating retail outlets
Correct Answer:
Verified
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