Which of the following statements best represents a contractual association between a manufacturer, wholesaler, or service organization and independent businesspeople who buy the right to own and operate one or more units in the system represented by the contract?
A) corporate chain
B) franchise
C) voluntary chain
D) retailer cooperative
E) warehouse club

Question

Quizplus · Accepted Answer

The statement describes a franchise agreement, where independent businesspeople (franchisees) buy the right to own and operate one or more units of the system (franchise) represented by the contract. A corporate chain refers to a group of stores owned and operated by a single company. A voluntary chain is a contractual agreement between independent retailers to engage in group buying and merchandising. A retailer cooperative is a group of independent retailers who jointly own a wholesale operation. A warehouse club is a type of retailer that sells a limited selection of products in bulk to members who pay an annual fee.

Which of the Following Statements Best Represents a Contractual Association