A Large Greenhouse Grower That Wants to Source a Suitable

question 34

Multiple Choice

A large greenhouse grower that wants to source a suitable organic liquid fertilizer contacts Organics.The grower is willing to pay a premium price for Organics's product.Accepting the order would mean Organics will not be able to completely fill existing orders to its current customers.Organics desires the new business but wants to maintain its existing customer base.Which of the following strategies should Organics use to solve this problem?

• A) Abandon all but the most important of the existing orders and fill the new order.
• B) Present an ultimatum on existing orders offering delivery on a later date or nothing at all.
• C) Comply with existing obligations,fill the orders,and offer the new business what is left.
• D) Offer a price break on existing orders in return for varying quantity and delivery date.

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Definitions:

Offering Price

The price at which new shares are offered to the public by an issuer or by shareholders of the company.

Initial Public Offering (IPO)

The process by which a private company offers its shares to the public for the first time, becoming a publicly traded company.

Underwriters

Professionals or entities that evaluate and assume the risk of another party, often in the context of issuing insurance policies or underwriting securities in financial markets.

Offer Price

The price at which an asset or service is offered for sale to potential buyers.