What is the difference between corporate chains, voluntary chains, and retailer cooperatives? How are such retail organizations different from franchise organizations?
What will be an ideal response?
Corporate chains are two or more outlets that are commonly owned and controlled. They have many advantages over independents. Their size allows them to buy in large quantities at lower prices and gain promotional economies. They can hire specialists to deal with areas such as pricing, promotion, merchandising, inventory control, and sales forecasting. A voluntary chain is a wholesaler-sponsored group of independent retailers that engages in group buying and common merchandising. The other type of contractual association is the retailer cooperative — a group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts. The main difference between franchise organizations and other contractual systems is that franchise systems are normally based on some unique product or service; a method of doing business; or the trade name, goodwill, or patent that the franchisor has developed.
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If a company sells its bonds at face value, the effective interest rate is
A) lower than the nominal rate. B) higher than the nominal rate. C) equal to the contract rate. D) equal to the warrant rate.
Company A uses LIFO and Company B uses FIFO for inventory valuation. Otherwise, the firms are of similar size and have the same revenue and expense. Assume inflation. In analyzing liquidity and profitability of the two firms, which of the following will hold true?
a. It is impossible to compare two firms with different inventory methods. b. Company B will have relatively higher profit and higher inventory turnover. c. Company B will have relatively higher profit and lower inventory turnover. d. Company A will have a higher current ratio and acid test ratio, with the same profit. e. Company B will have relatively higher profit and a higher current ratio.
Which of the following statements is correct?
a. Capabilities exist in functional areas, such as HR and marketing b. Capabilities occur when different functional capabilities are combined and integrated c. Any capability is only a source of competitive advantage when it is stronger than those of its immediate competitors d. All of the above
The process of systematically gathering, recording, and analyzing data concerning a particular marketing problem is called
A. marketing research. B. target marketing. C. marketing segmentation. D. market sampling. E. decision research.