Andy,an Entrepreneur,plans to Open a Bakery in His Neighborhood

Multiple Choice

Andy,an entrepreneur,plans to open a bakery in his neighborhood.He realizes that there are no branded bakeries in the locality,even though there are a number of independent bakeries.He approaches Soft Bakes,an international bakery chain,and signs an agreement with them that gives him the right to open a bakery shop that uses Soft Bakes' name and management methods.In this scenario,which of the following business methods does Andy use?

A) business-format franchise
B) joint venture
C) shakeout
D) vertical integration
E) delayering