Which of the following strategies for fragmented industries grants the right to use the parent's name, reputation, and business model in a particular location or area in return for a fee and often a percentage of the profits?
A) Chaining
B) Franchising
C) Vertical merger
D) Horizontal merger
E) B2B

Question

Quizplus · Accepted Answer

Franchising is a strategy for fragmented industries that grants the right to use the parent's name, reputation, and business model in a particular location or area in return for a fee and often a percentage of the profits. Chaining refers to the ownership and operation of multiple units or outlets, while vertical and horizontal mergers involve the combination of companies at different stages of the supply chain or within the same industry. B2B (business-to-business) refers to transactions between companies rather than between companies and consumers.

Which of the Following Strategies for Fragmented Industries Grants the Right