A Group of Small Convenience Stores Forms a New Business

question 104

Multiple Choice

A group of small convenience stores forms a new business entity to buy products directly from manufacturers.The group buys products in bulk which are then distributed among members.This helps the stores obtain better profit margins.Which of the following types of vertical marketing system can be observed here?

• A)contractual
• B)corporate
• C)administered
• D)controlled
• E)regulatory

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Definitions:

FASB

Refers to the Financial Accounting Standards Board, which is the organization responsible for establishing accounting and financial reporting standards in the United States.

Service Business

A company that provides intangible products or services to customers, as opposed to selling physical goods.

Managerial Accounting

A field of accounting focused on providing information to internal users to aid in decision-making, planning, and controlling operations.

Financial Accounting

The field of accounting that focuses on tracking and reporting the financial transactions of a business, resulting in the creation of financial statements.