A/An _____ Is Nonbinding on Either the Buyer or the Supplier

question 104

Multiple Choice

A/An _____ is nonbinding on either the buyer or the supplier and typically provides discounts to corporate buyers based on total volume for the corporation as a whole, not for any subunits individually.

• A) annual contract
• B) pricing agreement
• C) corporate agreement
• D) escape clause
• E) national buying agreement

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operating expenses, from its total revenues.

Operating Costs

Expenses associated with the day-to-day operations of a business, including rent, utilities, payroll, and materials.

Free Cash Flow

Free cash flow is a financial performance measure that calculates how much cash a company generates after accounting for capital expenditures necessary to maintain or expand its asset base.

Net Operating Profit After Taxes (NOPAT)

A measure of a company's operating efficiency, calculated as its operating income minus taxes, assuming no financing is used.