Which statement best describes sharing arrangements for a prep/storage facility between two funeral establishments?

• A. The firms are under common ownership or have a contractual agreement to share facilities
• B. The firms are under common ownership and serve different geographic markets
• C. The firms are under common ownership and located in the same county
• D. The firms are under common ownership and serve the same geographic market

Answer: (B)

Sharing a prep and storage facility is allowed when two funeral establishments are under common ownership or have a contract to share facilities, but the key is that they operate in different geographic markets. This arrangement lets them control and coordinate the shared space while avoiding competition in the same local market, which can raise concerns about market power. By specifying common ownership and distinct geographic markets, the description reflects the balance between shared facilities and maintaining separate market presence. If the firms served the same geographic market, sharing could reduce choice and competition, making that scenario less appropriate to describe the arrangement.