A Price Reduction Offered to Channel Intermediaries for Purchasing Specified

question 24

Multiple Choice

A price reduction offered to channel intermediaries for purchasing specified quantities of a product at a single time is called a:

• A) merchandise credit.
• B) buying allowance.
• C) selling incentive.
• D) push money allowance.
• E) cooperative incentive.

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Definitions:

Forecasting External Financing

It involves predicting the amount of external funding a company will need to support its anticipated growth and operational needs.

Management Team

The group of individuals responsible for the strategic planning and day-to-day operations of a company.

Business Plan

A document projecting a firm’s physical and financial performance into the future. Business plans can be short or long range. Long-range plans are “strategic” and tend to be more verbal than financial. Shorter-term plans are described as “operational,” and detail the more routine running of the business.

Dividend Policy

A company's strategy or guidelines dictating how often dividends will be paid to shareholders, the form of the dividend, and how much will be distributed.