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The Following Questions Are Linked to This Scenario: a Major

Question 58

Multiple Choice

The Following Questions are linked to this scenario: A major firm is debating whether to convert from a retail chain to a retail franchising form of retail organization. Among its considerations are the advantages and disadvantages of each method in terms of costs, investment, channel control, and competitive impact.
-Which of these statements correctly differentiates between the characteristics of a retail chain organization and retail franchising?


A) Only retail chains participate in joint promotions.
B) Store management in franchising consists of owners and not employees of the chain.
C) Only retail chains typically receive site selection and troubleshooting assistance.
D) A retail franchisee cannot own more than one unit of the same franchise.

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