What type of contractual system describes a situation where assistance in selecting the location,setting up the store or facility,advertising,and training personnel is provided by the parent company?
A)administered system
B)conglomerate system
C)franchise system
D)vertical integrated system
E)retail-sponsored cooperative

Question

Quizplus · Accepted Answer

The description provided fits a franchise system, where a parent company (franchisor) provides assistance and support to a franchisee in exchange for a fee or percentage of profits. This typically includes guidance on selecting a location, setting up the store, advertising, and training personnel to maintain consistency across franchise locations. An administered system refers to a centralized decision-making process regarding production and distribution, while a conglomerate system involves a parent company owning and operating multiple subsidiaries in different industries. Vertical integration refers to a company owning and controlling the entire supply chain for a product, from production to distribution. A retail-sponsored cooperative is a group of independent retailers who come together to buy in bulk and share advertising costs.

What Type of Contractual System Describes a Situation Where Assistance