Starbucks owns and operates most of its retail outlets; McDonalds franchises most of its retail outlets. An advantage of franchising over vertical integration is: a. Franchising permits superior coordination of retail activities with upstream activities. b. Franchising subjects the operators of retail outlets being subject to "high-powered" incentives. c. Franchising permits more effective quality control of the retail outlet. d. Franchising is always more profitable than vertical integration because the franchisor does not bear the costs of owning the retail outlets and paying their staff.
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