Exclusive Dealing Is When

question 123

Multiple Choice

Exclusive dealing is when:

• A) a company is forbidden from dealing with other possible buyers or sellers
• B) a company is forbidden from dealing with other possible buyers, but is free to work with other possible sellers
• C) a company is forbidden from dealing with other possible sellers, but is free to work with other possible buyers
• D) a company chooses to only use one supplier
• E) a company only sells to one customer

---

Definitions:

Sick Pay

Compensation paid by employers to employees during periods when they are unable to work due to illness.

Cumulative Preferred Stock

Cumulative preferred stock is a type of preferred stock that accumulates dividends in case of non-payment in any period, requiring these dividends to be paid out before any dividends to common stockholders.

Dividend Payable

A liability recorded when a company declares dividends to be paid to shareholders, representing the amount owed until the dividends are distributed.

Current Liability

Liabilities due within a short period, usually one year, that are to be paid with current assets.