The Use of Promotional Tools to Persuade Wholesalers and Retailers

question 167

Multiple Choice

The use of promotional tools to persuade wholesalers and retailers to stock and sell merchandise represents a

• A) pull strategy.
• B) segmentation strategy.
• C) push strategy.
• D) product placement strategy.

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Definitions:

Firm Commitment

In finance, an underwriter's promise to purchase all the unsold shares of an issue, thereby guaranteeing the amount of capital that the issuer will raise.

Standby Underwriting

A commitment by an underwriter to purchase any unsold shares during an offering, ensuring that the issuing company raises the full amount of capital.

Best Efforts

A contractual clause requiring one party to exert all reasonable attempts to fulfill the terms of the agreement.

Preemptive Rights

The rights that allow existing shareholders to purchase new shares in a company before the company offers them to the public, to maintain their proportionate ownership.