Many Manufacturers Allow Their Suppliers Access to Their Sales Information

question 54

Multiple Choice

Many manufacturers allow their suppliers access to their sales information and automatically authorize purchase of materials to replace those used in the products that have been sold.In these organizations,sales are based on:

• A)Profit margins.
• B)Extrinsic rewards.
• C)Outsourcing.
• D)Derived demand.

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Definitions:

Own Competition

A strategy where a company competes with its own products in the market to cater to different customer needs or market segments.

Licensee

An individual or entity that has been granted legal permission by a licensor to use, produce, or sell someone else's product, technology, or intellectual property.

Direct Ownership

A method of entering an international market in which a domestic firm actively manages a foreign company or overseas facilities.

Assembly Plant

A facility used for industrial production where pieces of products are put together to construct a finished good.