Which of the Following Is True of Franchises

Multiple Choice

Which of the following is true of franchises?

A) They involve a parent company and an independent firm entering into a contractual relationship to set up and operate a business in a particular way.
B) They involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve competitive position.
C) They involve a wholesaler contracting with a number of retailers performing channel functions for them.
D) They involve a retailer assuming ownership of a primary manufacturer through the presence of a channel leader.