Which of the Following Is NOT a Drawback of a Revenue-Sharing

question 49

Multiple Choice

Which of the following is NOT a drawback of a revenue-sharing contract?

• A)The supplier carries a greater burden of the risk.
• B)The supplier may not be motivated to expand its capacity for fear of ending up with excess capacity if demand remains weak.
• C)The supplier has the administrative burden of monitoring the manufacturer's sales and revenues to be sure the firm isn't underreporting them.
• D)The burden of overcapacity is borne by the buyer.

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Definitions:

Commitment

A pledge or promise to do something; often refers to dedication towards a cause, activity, or relationship.

Foreclosure

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments.

Suicidal Tendencies

A range of thoughts or behaviors indicating an individual's consideration or risks of attempting suicide.

Drug Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or other detrimental health effects.