Which of the Following Statements Best Describes the Difference Between

question 109

Multiple Choice

Which of the following statements best describes the difference between a corporate vertical marketing system and an administered vertical marketing system?

• A)Administered vertical marketing systems gain power through ownership while corporate vertical marketing systems gain power through contractual agreement.
• B)Administered vertical marketing systems gain power through the size and influence of one channel member and through ownership,rather than through contractual arrangement.
• C)Administered vertical marketing systems gain power through contractual agreements and ownership rather than through size.
• D)Administered vertical marketing systems are usually larger and more profitable than corporate vertical marketing systems.
• E)Administered vertical marketing systems achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership.

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Definitions:

Network Designs

The planning and structuring of a network, including the physical and logical design to meet specific requirements and objectives.

Administrative Costs

Expenses related to the general operation of an organization, such as salaries of non-production staff, office supplies, and utilities.

Ethics Competency

The ability to understand and apply ethical principles and standards in decision-making processes.

Enron

A former American energy, commodities, and services company based in Houston, Texas, known for one of the biggest accounting frauds and corporate scandals in history.