A Retail Chain Hires a Company to Design and Install

question 119

Multiple Choice

A retail chain hires a company to design and install a computer network that would allow each store in the chain to check the inventory of others in the chain for customer-requested items. The retail chain would have purchased a(n) :

• A)production good.
• B)support good.
• C)fabricating part.
• D)convenience good.

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Definitions:

Direct Cross-Subsidies

Financial strategy where revenue from one product or service is used to support another product or service within the same organization.

Upfront Cost

Initial investment required before starting a project, service, or acquiring a product, often referred to in financial decisions.

Franchising Revenue Model

A business strategy where a company grants third parties the rights to operate using its brand, system, and ongoing support, in exchange for a fee or a percentage of the revenue.

Operational Support

Assistance provided to ensure the smooth functioning and maintenance of daily operations within an organization.