Which of the Following Terms Refers to Operating in Concentrations

question 22

Multiple Choice

Which of the following terms refers to operating in concentrations of related, interdependent companies within an industry that uses the same suppliers, specialized labor, and distribution channels?

• A)outsourcing
• B)dumping
• C)franchising
• D)clustering

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Definitions:

Legally Sufficient Consideration

In contract law, it refers to something of value that is exchanged between the parties, supporting a binding agreement.

Forbearance

The act of refraining from exercising a legal right; an agreement between a lender and a borrower in which the lender agrees to temporarily cease requiring mortgage payments, to delay foreclosure, or to accept smaller payments than previously scheduled.

Discount

A reduction from the usual cost of something, often applied to encourage buyers.

Preexisting Duty

An obligation that one is already legally bound to perform, which cannot serve as consideration for a new contract.