Chapter 14 Indicate whether the statement is true or false. 1. In a franchise, a franchisor pays a franchisee for the right to use its name, product, and methods of operation. a. True b. False 2. Around the world, most retailers are independent, with each owner operating a singular store within a local community. a. True b. False 3. A restaurant has a narrow product assortment and its level of service, price, and gross margin all range between low and high. a. True b. False 4. Among department stores, specialty stores, drugstores, and convenience stores, the gross margin is highest for specialty stores. a. True b. False 5. Many drugstores also carry an extensive selection of cosmetics, health and beauty aids, seasonal merchandise, greeting cards, toys, and some non-refrigerated convenience foods. a. True b. False 6. Specialty stores such as Best Buy, Staples, and GameStop have the thinnest product assortments, usually carrying single or narrow product lines that are considerably deep. Specialty stores compete on the basis of low prices, high turnover, and high volume. a. True b. False 7. With fewer loyal customers and a low customer penetration, the shop-at-home industry has shrunk over the years. a. True b. False