Why Did Walmart Require Its Suppliers to Sign a Code

question 68

Multiple Choice

Why did Walmart require its suppliers to sign a code of basic labor and then hired outside auditing firms to inspect supplier factories?

• A)Walmart wanted to maintain quality merchandise despite its discount reputation.
• B)Walmart was working to build strategic partnerships within Asia.
• C)Walmart was working towards collaborative merchandising.
• D)Walmart was developing a "Made in America" campaign.
• E)Walmart wanted to ensure supplier compliance of core labor standards.

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Definitions:

Trade-In Allowance

The amount credited to a buyer for the value of a traded item towards the purchase of a new item.

Accumulated Depreciation

The aggregate depreciation cost allocated to a fixed asset since its initial purchase.

Commercial Substance

A financial concept indicating that a transaction significantly changes the economic position or cash flows of the entity.

Equipment Ledger

A detailed record that tracks the acquisition, depreciation, and disposal of equipment owned by a business.