Kitchen Plus,a Retailer,has Formed an Agreement with XOXO,a Manufacturer of Kitchen

question 12

Multiple Choice

Kitchen Plus,a retailer,has formed an agreement with XOXO,a manufacturer of kitchen gadgets and supplies.Kitchen Plus has agreed to exert its best efforts to ensure effective distribution of XOXO goods in its assigned territory of Houston.If Kitchen Plus fails to meet performance targets,it will lose its preferred status with XOXO,although the retailer can still sell outside its territory.Which term best describes the agreement between Kitchen Plus and XOXO?

• A) Primary responsibility
• B) Absolute confinement
• C) Single block exemption
• D) Price-market segmentation
• E) Profit pass-over arrangement

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Definitions:

Excise Tax

A tax charged on specific goods and services, such as gasoline, tobacco, and alcohol.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied, typically upward sloping.

Sales Tax

A tax levied on the sale of goods and services, typically calculated as a percentage of the purchase price.

Perfectly Elastic

A situation in demand where consumers will buy an infinite quantity of goods at a certain price but none if the price increases even slightly.