Even though all of the hardware stores that operate under the name of Hardie's Hardware are independently owned and managed, they have signed an agreement to participate in chain promotions, and cooperate as a unified system of stores. The Hardie's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

True or False?

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Business

Amelie

2 April, 04:24

Even though all of the hardware stores that operate under the name of Hardie's Hardware are independently owned and managed, they have signed an agreement to participate in chain promotions, and cooperate as a unified system of stores. The Hardie's Hardware stores are using a distribution system known as a wholesaler-sponsored chain.

True or False?

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Answers (1)

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Ximena · Answer 1

True

Explanation:

A wholesaler sponsored chain is a distribution system, whereby individual stores enter into an agreement wherein they participate in chain promotions under the same name i. e collectively as one.

Such a mechanism is used to enable voluntary store chains to compete independently and efficiently with big organizations.

Under this, the wholesalers purchase large quantities of goods for retailers which ensures economy as well as enabling the chain of retailers to compete efficiently.

The given case relates to such an example wherein all the hardware stores operating under a name are independently owned, having signed an agreement to participate in promotions collectively as one single unit.