Kumquat Computers Is a Major Computer Manufacturer That Also Owns

question 133

Multiple Choice

Kumquat Computers is a major computer manufacturer that also owns all of the organizations in the channel of distribution for its computers,including a chain of Kumquat Direct retail stores.Kumquat is using a:

• A)franchise distribution system.
• B)corporate distribution system.
• C)administered distribution system.
• D)retail cooperative system.

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Definitions:

Accounting Basis

The method by which revenues and expenses are recorded and recognized in financial statements, such as cash basis or accrual basis.

Rate of Return

The profit or deficit incurred on an investment during a designated time, shown as a fraction of the initial investment amount.

Net Income

The profit of a company after all expenses and taxes have been deducted from revenue.

Accounting Break-even

The point at which total revenues exactly equal total explicit costs, leading to neither a profit nor a loss.