Which of These Statements Regarding Corporate Chains Is Most Accurate

question 35

Multiple Choice

Which of these statements regarding corporate chains is most accurate?

• A) Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation-the Clayton Act as amended by the Sherman Act.
• B) Corporate chains generally own most if not all of their suppliers-a practice known as forward integration-so they can save distribution costs.
• C) Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee.
• D) Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer.
• E) Corporate chains are multiple outlets under common ownership.

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Definitions:

Capital and Financial Account

Refers to parts of the balance of payments where capital transfers, investments, and financial derivatives are recorded.

Money Inflows

Financial resources entering a particular entity, such as a business or country, over a period of time.

Financial Account Balance

A component of a country's balance of payments that records transactions of foreign investment associated with that country.

Real and Financial Assets

Real assets are physical or tangible assets like real estate, while financial assets are intangible and represent a claim on future income or assets, such as stocks and bonds.