An Example of a Supplier That Used Its Bargaining Power

question 196

Multiple Choice

An example of a supplier that used its bargaining power to charge high prices to its customers is

• A)Walmart, which required many of its suppliers to alter their distribution systems to accommodate Walmart's need to control the flow of goods to its stores.
• B)the firms that supply paper napkins to McDonald's restaurants.
• C)the Technicolor Company, the sole producer of cameras and film that movie studios needed to produce color movies in the 1930s and 1940s.
• D)the publishers of the Encyclopedia Britannica.

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Definitions:

Operating Cash Flow

The cash generated from a company's normal business operations, indicating whether a company is able to maintain or grow its operations.

CCA Half-year Rule

A regulation in Canadian tax law allowing only half of the normal capital cost allowance deduction in the year of acquisition of a depreciable asset.

CRA

Canada Revenue Agency; responsible for administering tax laws for the Government of Canada and for most provinces and territories.

Depreciate

The process of allocating the cost of a tangible asset over its useful life, reflecting its decrease in value over time.