Corporate chains can spread their management costs over many stores, giving them a cost advantage over independent stores. The other options are incorrect as corporate chains account for more than 10 percent of retail sales and can obtain economies of scale in distribution, and they are not declining in importance.

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Corporate Chains

Question 267

Multiple Choice

Corporate chains:

A) can get a cost advantage over independent stores by spreading management costs to many stores.
B) account for nearly 10 percent of retail sales.
C) usually cannot obtain economies of scale in distribution.
D) are declining in importance.
E) None of these alternatives is correct for corporate chains.

Correct Answer: