Which of the Following Developments Has Resulted in a Transfer

question 106

Multiple Choice

Which of the following developments has resulted in a transfer of power from manufacturers to retailers?

• A)The advent of optical scanners and computers has given manufacturers access to sales information.
• B)An increase in brand loyalty among consumers has led to an increase in sales promotion activities.
• C)Consolidation in the grocery industry has resulted in larger chains with greater buying power and clout.
• D)A significant decrease in promotional sensitivity and time-sensitivity among consumers has occurred since the early 2000s.
• E)Increasingly, manufacturers are introducing more private-label brands into the market.

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Definitions:

Operating Activities

These are the day-to-day activities of a business that involve producing and selling goods or providing services, and include cash flows related to sales, expenses, and working capital.

Investing Activities

Investing Activities involve the acquisition and disposal of long-term assets and investments not included in cash equivalents.

Financing Activities

Transactions and events where cash is raised or repaid to finance the company’s operations or investments, typically involving debt, equity, and dividends.

Comparative Balance Sheet

Financial statement presenting the financial position of an entity at different points in time, facilitating period-to-period comparisons.