Forward Integration Refers to

question 104

Multiple Choice

Forward integration refers to

• A) a retailer that owns a manufacturing operation.
• B) a wholesaler that owns a manufacturing operation.
• C) retailers that form a strategic channel alliance with manufacturers to purchase products at better prices since they are able to place much larger orders.
• D) a producer that owns an intermediary at the next level down in the marketing channel.
• E) channels in which all members own stock in the manufacturer's company.

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Definitions:

Compounded Semi-annually

Refers to the process where interest is calculated and added to the principal sum of a deposit or loan twice a year.

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, so that each successive calculation includes interest on the interest.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing tool for employees and the self-employed in Canada.

Compounded Annually

Interest on an investment that is calculated once a year and added to the principal sum of the investment.