Starbucks owns and operates most of its retail outlets; McDonalds franchises most of 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 being subject to "high-powered" incentives.
C) Franchising permits more effective quality control of the retail outlet.
D) Franchising is always more profitable than vertical integration because the franchisor does not bear the costs of owning the retail outlets and paying their staff.
Correct Answer:
Verified
Q23: The opening quotation concerning Bath Fitter illustrates
Q30: The capitalist economy comprises two forms of
Q33: The growth in the scope of business
Q35: The reason that the producers of wood
Q36: Vertical integration by industrial firms during the
Q38: Which of the following factors is not
Q38: The main business of the Coca-Cola Company
Q39: The corporate scope of Walt Disney Company
Q42: The main lesson to be drawn from
Q43: Vertical integration by Zara,the main division and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents