Scenario 12

question 105

Multiple Choice

Scenario 12.2 Use the following to answer the questions.
The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives 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 12.2. BASF has decided to offer discounts to its businesses customers in the form of the following: For each order of $100,000 or more during the next 90 days, the buyer will receive a rebate of 5 percent. This type of pricing would be an example of ____ discounts.

• A) allowance
• B) cash
• C) seasonal
• D) noncumulative
• E) cumulative

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Definitions:

Gains

The financial increase obtained from an investment or transaction, exceeding the initial cost or investment.

Mergers

The combination of two or more companies into a single entity, often aiming to achieve greater efficiency or market share.

Complementary Resources

Assets or inputs in a business that work together to increase efficiency or create a greater competitive advantage.

Synergistic Benefits

Gains achieved by combining different parts of a business or companies that work better together than separately.