AB Distributors Is a Company That Serves as a Shipping

question 96

Multiple Choice

AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, "Since the company has increased its revenue, it is now more profitable." Which of the following, if true, would most strongly support Jonathan's contention?

• A) AB Distributor is a relatively new company.
• B) AB Distributor is a for-profit company.
• C) AB Distributor's costs have decreased from the previous year.
• D) AB Distributor's competitors have had increased revenue.
• E) AB Distributor has hired more employees recently.

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Definitions:

Franchise

A type of license that a party (franchisee) acquires to allow them to have access to a business's (franchisor's) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business's name.

Tying Arrangement

A business practice where the sale of one product is linked to the compulsory purchase of another, often scrutinized under antitrust laws.

Tying Arrangement

A business practice where the sale of one product or service is conditioned on the purchase of another product or service.

Product Conditions

The state or quality of goods sold, including their fitness for the intended purpose and compliance with any expressed or implied warranties.