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Which of the following is not a classification of a franchise? a. Chain-style business operation b. Manufacturing arrangement c. Vertically integrated d. Distributorship

Sagot :

Answer:

c. Vertically integrated

Explanation:

‘Vertically integrated’ is not a classification of a franchise but this is a business strategy where one firm acquires different levels of the supply chain for the same product enabling the firm to have exclusive operational control of those stages. Meanwhile, franchises are totally different since they are individual businesses but share the same guidelines and logo set by the franchisor. We must distinguish the vertical integration which implies ownership and authoritative control over functions within one or the same company from the franchise classifications that exist between Franchisors and independent Franchisees.