When Provided with an Offer of a 10 Percent Discount

question 120

Multiple Choice

When provided with an offer of a 10 percent discount to purchase electronic calculators within the next 30 days, Target buys extra calculators to take advantage of the price discount. Target will offer the calculator to consumers at a discount during the special sale, but then have additional calculators to sell when the sale is over. This is an example of:

• A)an off-invoice allowance.
• B)slotting fee.
• C)forward buying.
• D)diversion.

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Definitions:

U.S. Goods

Products that are produced, manufactured, or assembled in the United States.

Foreign Capital Inflow

The entry of investment from external sources into a country, typically in the form of foreign direct investment (FDI), portfolio investment, or loans, contributing to economic development.

Foreign Exchange Reserves

Assets held on reserve by a central bank in foreign currencies, used to back liabilities and influence monetary policy.

Current Account

A component of a country's balance of payments that measures the trade in goods and services, plus net earnings on investments, and direct transfers.