Exclusive Dealing Is When

question 123

Multiple Choice

Exclusive dealing is when:

• A) a company is forbidden from dealing with other possible buyers or sellers
• B) a company is forbidden from dealing with other possible buyers, but is free to work with other possible sellers
• C) a company is forbidden from dealing with other possible sellers, but is free to work with other possible buyers
• D) a company chooses to only use one supplier
• E) a company only sells to one customer

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation where an asset’s book value is reduced at double the rate of its straight-line depreciation.

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on its usage or activity levels, rather than time.

Depreciation Expense

Depreciation expense is the allocated portion of the cost of a tangible asset that is expensed over its useful life, reflecting wear and tear, obsolescence, or loss of value.

Double-Declining-Balance

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly in its early years.