A number of independent drugstores are working with a wholesaler to obtain economies of scale in buying. They were organized by this wholesaler after a recent meeting to discuss ways of competing with corporate chains. These drugstores are now part of a:

Question

Quizplus · Accepted Answer

These independent drugstores have voluntarily banded together to achieve economies of scale in their buying power, which is a characteristic of a voluntary chain. A corporate chain indicates a centralized ownership and management structure, which is not present here. A consumer cooperative is also not applicable since the drugstores are not organized for the sole purpose of benefiting consumers. A cooperative chain exists when businesses collectively own and operate their own wholesaling and/or retailing operations, which is not the case here. A franchise chain involves a franchisor providing a trademark and support system to individual franchisees in exchange for fees, which is also not the case here.

A Number of Independent Drugstores Are Working with a Wholesaler