Question

Which of the following is not a feature of Chain store?

• A. The manufacturing/procurement of merchandise for all the retail units is centralized at the head office.
• B. Each retail shop is under the direct supervision of a Branch Manager.
• C. As the size of these stores is very large, they are generally formed as a joint stock company.
• D. The prices of goods in such shops are fixed and all sales are made on cash basis.

Answer 1

The correct option is C As the size of these stores is very large, they are generally formed as a joint stock company.

Chain store is that it deals in one type of product. Thus the idea behind multiple shops is specialisation. Thus we can say that chain stores mean a group of stores, handling similar lines of merchandise with single ownership and scattered location