When Buyers and Sellers Are Separated by Vast Distances, Geographical

question 111

Multiple Choice

When buyers and sellers are separated by vast distances, geographical adjustments may be made to reflect the cost of transportation of the products from sellers to buyers. Which method of quoting prices would be chosen by a seller who wants to maximize profits?

• A)single-zone pricing
• B)multiple-zone pricing
• C)FOB origin pricing
• D)uniform delivered pricing

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Definitions:

Written Contract

A formal agreement between two or more parties that is expressed in writing and is binding under law.

Binding Written Agreement

A contract documented in writing that is legally enforceable between two or more parties.

Entrepreneurship

The act of creating, designing, and running a new business, often initially a small business, offering products, processes, or services for sale or hire.

Emancipated Minor

A legal status granted to individuals under the age of 18, allowing them to enjoy adult rights and responsibilities due to certain circumstances.