Scenario 12.4 Use the Following to Answer the Questions

question 120

Multiple Choice

Scenario 12.4
Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating. The product is used on cell phones and other hand-held electronic devices that give them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
-Refer to Scenario 12.4. If BASF were to price its products in barrels from the factory, before it is loaded on the carrier, this would be an example of pricing.

• A) buy-back allowance
• B) geographic
• C) F.O.B destination
• D) F.O.B. origin
• E) base-point

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Definitions:

Borrow

The act of receiving something of value in exchange for the promise to return it or its equivalent value at a later date.

Lend

The act of giving money or goods to someone with the expectation that it will be paid back in the future.

Consumption

The usage of resources or products for the purpose of satisfying human needs or wants.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.