Which Type of Vertical Marketing System (VMS) Gives an Organization

question 120

Multiple Choice

Which type of vertical marketing system (VMS) gives an organization more control over both supply sources and resale of its products, while at the same time increasing the organization's capital investment and its fixed costs?

• A) administered
• B) contractual
• C) conventional
• D) corporate
• E) horizontal

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Definitions:

Cost of Equity

The return that investors expect for investing in a company's equity, reflecting the risk compared to the risk-free rate of return.

Beta

Beta is a measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.

Market Risk

The risk of losses in investments due to market-wide phenomena, affecting all investments across the board.

CAPM Approach

A financial model used to determine the expected return on an investment, considering its risk relative to the market using the Capital Asset Pricing Model.