Which of the following is true of retail cooperative organizations?
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.

Question

Quizplus · Accepted Answer

Retail cooperative organizations involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve their competitive position. This allows them to achieve economies of scale and compete with larger retailers. The other options do not accurately describe retail cooperative organizations.

Which of the Following Is True of Retail Cooperative Organizations