Which of the Following Statements Regarding Corporate Chains Is Most

question 71

Multiple Choice

Which of the following statements regarding corporate chains is most accurate?

• A)Corporate chains cannot bargain with a manufacturer to obtain product volume discounts due to federal anticompetitive legislation-the Clayton Act as amended by the Sherman Act.
• B)Corporate chains generally own most if not all of their suppliers-a practice known as forward integration-so they can save distribution costs.
• C)Consumers have fewer choices in merchandise since all buying decisions are made by a decentralized buying committee.
• D)Corporate chains offer the least benefit to consumers since they are the farthest removed from the ultimate consumer.
• E)Corporate chains are multiple outlets under common ownership.

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Definitions:

Statement of Financial Position

A financial statement that shows an organization's assets, liabilities, and net equity at a specific point in time, often referred to as a balance sheet.

Perpetuity

A duration of ownership or investment that lasts indefinitely, often used in the context of trusts or investments that generate an eternal income stream.

Diverse Sources

Diverse sources, in financial contexts, refer to obtaining funds or resources from a variety of origins to reduce dependency on a single source and increase financial stability.

Maximizes Autonomy

The act of increasing the self-governing power or independence of an individual or entity, allowing for greater self-determination and freedom from external control.