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:

Seizures

Abrupt, involuntary electrical activity in the brain leading to alterations in actions, movements, emotions, and awareness.

Undersupply

Refers to a situation where the availability of a particular resource or item is less than the demand for it.

Motor Neurons

Neural cells that make up the route for impulses moving from the brain or spinal cord toward muscles or glands.

Efferent

Referring to nerve fibers that carry impulses away from the central nervous system to effectors, such as muscles or glands.