Forward Buying Causes

question 3

Multiple Choice

Forward buying causes:

• A) A slowdown in the distribution process.
• B) Brand loyalty erosion.
• C) Lower distribution costs.
• D) Greater efficiencies in the distribution process.
• E) Higher prices to consumers.

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Definitions:

Debt-Equity Ratio

A financial ratio that shows the relative amounts of shareholders' equity and debt financing used to fund a company's assets.

Capital Projects

Large-scale investments undertaken by a firm to maintain or expand its business operations.

Earnings Per Share

A portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Reverse Stock Splits

A corporate action in which a company reduces the number of its existing shares to increase the share price without changing the company's market capitalization.