BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Joint-Venture
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Franchise
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Non-Profit Corporation
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Cooperative corporation
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Detailed explanation-1: -Answer and Explanation: A McDonald’s franchise is an example of a quasi-vertical integration franchise.
Detailed explanation-2: -McDonald’s is an example of a service/product mix – it is more service than product and it is intangible.
Detailed explanation-3: -Restaurants, hotels, resorts, auto rental businesses, shipping companies, gyms, tax preparation services, and cleaning companies are all business types that have developed into successful franchises. The amount of investment required to establish your franchise is another important consideration.
Detailed explanation-4: -McDonald’s sells franchises, not burgers. As a franchisor, McDonald’s primary business is to sell the right to operate its brand. It gets its money from royalties and rent, which are paid as a percentage of sales.