When a Company Turns Over Ordering and Inventory Responsibilities to Its

question 53

Multiple Choice

When a company turns over ordering and inventory responsibilities to its suppliers, this is known as:

• A) carpet contracting.
• B) reverse contracting.
• C) strategic alliance.
• D) periodic orders.
• E) blanket contracting.

---

Definitions:

Subscription Price

The price at which existing shareholders can buy more shares of a company, typically during a rights issue.

Value Of A Right

The value to shareholders of the right to purchase new shares issued by a company at a discount to the market price.

Rights Offering

A financial opportunity offered to existing shareholders to purchase additional shares at a discounted price before the new shares are offered to the public.

Rights Offering

An opportunity given to existing shareholders to purchase additional shares of the company's stock, often at a discount, before it is offered to the public.