Which of the following statements is FALSE?
a. Franchising is most appropriate in fragmented industries.
b. Franchising provides corporate growth with less risk than do mergers and acquisitions.
c. Successful franchising allows transfer of knowledge and skills from the franchisor to the franchisee.
d. Franchising agreements require more trust between firms than do other cooperative strategies.
Answer: Franchising agreements require more trust between firms than do other cooperative strategies.