If a Supplier Signs an Agreement with a Customer That

question 95

Multiple Choice

If a supplier signs an agreement with a customer that states $350 000 in savings will be earned by the customer over the next 18 months in an exchange for a ten-fold increase in the customer's share of supplies ordered by the customer, the two parties will have participated in what is called

• A) consultative selling.
• B) risk and gain sharing.
• C) solution selling.
• D) demand shifting.
• E) strategic alignment.

---

Definitions:

Industry Growth

The rate at which a specific industry or sector expands its production or capacities, often measured in terms of revenue or volume increase.

Industry Life Cycle

The progression of an industry through various stages including introduction, growth, maturity, and decline, which can influence companies' strategic planning.

Asset Plays

Investments made in companies with undervalued assets, where the investor believes the market hasn't fully recognized the asset's true value.

Turnarounds

The process wherein a company that has been performing poorly adopts new strategies to recover and become profitable.