McDonalds--Like Most Other Fast-Food Chains--Prefers to Franchise Rather Than Directly

Multiple Choice

McDonalds--like most other fast-food chains--prefers to franchise rather than directly operate its retail outlets.An advantage of franchising over vertical integration is:

A) Franchising permits superior coordination of retail activities with upstream activities
B) Franchising subjects the operators of retail outlets to "high-powered" incentives
C) Franchising permits more effective quality control of the retail outlet
D) Franchising avoids some of the transaction costs that can arise with owning and operating retail outlets