In Which of the Following Situations Is Dual Distribution Likely

question 145

Multiple Choice

In which of the following situations is dual distribution likely to be determined illegal?

• A) A manufacturer sells its product through independent and company-owned retail outlets.
• B) A manufacturer opens its own retail outlets across the country and sells its entire line of products.
• C) A producer uses company outlets to dominate independent retailers that carry its products.
• D) A producer sells its products both to wholesalers who deal with small and medium-sized retailers and directly to retailers.
• E) A producer charges higher prices at its company-owned retail outlets than independent retailers charge for the same products.

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Definitions:

Supplies Used

This term refers to the amount of supplies that have been consumed or utilized during a specific period in business operations.

Adjustment

A modification made to rectify the balance of an account, to reflect accrued expenses or revenues, or to correct errors.

Balance Sheet

An accounting summary showing the assets, liabilities, and owner's equity of a company on a given date.

Retainer Fee

A payment made in advance to hire or retain professional services, ensuring availability over a specific period.