Existence of Gray Markets Lead to Which of the Following

question 27

Multiple Choice

Existence of gray markets lead to which of the following outcomes?

• A) They make the distribution channel stronger.
• B) They create a free-rider problem making legitimate distributors' investments in supporting a manufacturer's product less productive.
• C) Goods sold in grey markets are always counterfeit.
• D) Goods sold in grey markets come with standard product warranties.
• E) Taxes imposed on grey market products are very high.

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Definitions:

Theory Y

A management theory developed by Douglas McGregor that assumes employees are self-motivated, seek responsibility, and want to make creative contributions to the workplace.

Self-fulfilling Prophecies

Expectations about a subject that cause the subject to act in ways that confirm the expectations.

Adult Personality

The culmination of personality development over an individual's lifetime, showcasing stable psychological traits.

Unity of Direction

A principle that all members of an organization should work towards the same objectives in a coordinated manner.