To Reduce the Negative Consequences of Forward Buying,a Manufacturer Can

question 105

Multiple Choice

To reduce the negative consequences of forward buying,a manufacturer can _____.

• A) divert goods 
• B) use a bridge-buying program 
• C) avoid national deals 
• D) use a bill and hold program 
• E) threaten legal action against retailers who practice it

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Definitions:

FA/Sales Ratio

A financial ratio that compares a company's fixed assets to its sales revenue, indicating how well assets are being used to generate sales.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the short term.

Cash Generated

The amount of money produced by a company's normal business operations after accounting for operational expenses and working capital.

Additional Funds Needed

Estimated funds required beyond what is currently available to the business to finance projected growth.