The most common type of contractual vertical marketing system is a
Select one:
a. licensing arrangement.
b. franchise.
c. partnership.
d. wholesaler.
e. joint venture.

A  business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task is known as:

a) Joint venture.

b) Partnership.

c) Merger.

d) Acquisition. 

e) All of the above.

An arrangement whereby a licensor grants the rights to intangible property to another entity for a specified period and in return, the licensor receives a royalty fee from the licensee is known as :

a) Licencing.

b) Joint venture.

c) Franchising,

d) None of the above.

(100 words addressing each question).

Q1: What is franchising?

Q2: Describe the three types of franchising and give an example of each

Q3: Discuss the advantages and disadvantages of franchising for the franchisee

Q4: Why might an independent entrepreneur be dissatisfied with the franchising arrangement?

Q5: Fran Lubbs says 'Follow the system. It's one of the reasons you bought the franchise, don't try to change it, break it, or fix it.' Do you agree with her? Explain.

Q6: What steps should a potential franchisee take before investing in a franchise?