Lisbon Gadgets,a California Manufacturer,offers a Regional Trade Promotion to West

question 46

Multiple Choice

Lisbon Gadgets,a California manufacturer,offers a regional trade promotion to West Coast retailers and wholesalers.Winston Wholesalers purchases large quantities of gadgets from Lisbon and distributes the products to stores on the East Coast where the discount is unavailable.Winston Wholesalers is most likely engaged in ________.

• A) slotting
• B) diverting
• C) price gouging
• D) forward buying
• E) gray marketing

---

Definitions:

PI

A mathematical constant approximately equal to 3.14159, representing the ratio of a circle's circumference to its diameter; if the context is finance, PI could refer to Profitability Index, indicating the ratio of payoff to investment for a project.

Profitability Index

A financial tool that calculates the relationship between the costs and benefits of a project by dividing the present value of future cash flows by the initial investment.

Limited Funds

A condition where resources, especially money, are finite or restricted in availability.