Heinz Paid $1M to Sobeys and Metro to Have Their

question 40

Multiple Choice

Heinz paid $1M to Sobeys and Metro to have their new 'Purple EZ Squirt Ketchup' placed at the front of the condiments aisle in each of the respective stores. However, sales for the Ketchup did not reach the pre-agreed upon targets. Heinz then paid another $500,000 to both Sobeys and Metro. This payment is considered a(n) :

• A)unsold fee
• B)slotting fee
• C)failure fee
• D)compensation fee

---

Definitions:

Financial Condition

The status of an organization or individual's financial health, typically assessed through analysis of assets, liabilities, income, and expenditures.

Future

The time period that is to come, which is uncertain and yet to be determined.

Activity Ratios

Financial ratios that measure the speed with which various asset accounts are converted into sales or cash.

Asset Usage

Refers to how effectively a business utilizes its resources, including physical assets, to generate revenue or achieve its objectives.