Merrill Lynch and Thompson Financial Had a Three-Year, $1 Billion

question 34

Multiple Choice

Merrill Lynch and Thompson Financial had a three-year, $1 billion project that put workstations on the desks of 25,000 of Merrill Lynch's brokers. These machines put the world of investing information at brokers' fingertips. Thompson, the supplier, was obliged to not only deliver technology and services on time and on budget, but also constantly improve customer-satisfaction levels among Merrill's brokers and customers. This is an example of

• A)a reciprocity agreement.
• B)exclusive dealing.
• C)supplier alliance.
• D)a buyer-seller relationship.
• E)a tying arrangement.

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Definitions:

Payables

Short for accounts payable; money owed by a company to its suppliers or creditors for products and services received but not yet paid for.

Fixed Asset Turnover Rate

A financial ratio that measures how effectively a company is using its fixed assets to generate sales.

Total Asset

The sum of a company's current and non-current assets, representing the company’s total owned resources.

Annual Sales

The total revenue a company generates from its operations over a one-year period.