To Discourage Consumers from Buying in Gray Markets, Some Manufacturers

question 22

Multiple Choice

To discourage consumers from buying in gray markets, some manufacturers have

• A) warned consumers that their warranty is null and void if purchased through a gray market supplier.
• B) shifted advertising resources from gray markets to black markets.
• C) increased the price to gray markets while maintaining existing prices to blue markets.
• D) petitioned government regulators to impose price controls.
• E) lowered the quality of their products to reduce gray market demand.

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Definitions:

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Rights To Net Assets

The entitlements that equity holders have to a company's assets after all liabilities have been settled.

Specific Assets And Liabilities

Items on a company's balance sheet that are clearly identified and quantified, including cash, inventory, debt, and equity.

Incorporated Business

A business entity that is legally recognized as separate from its owners, with its own rights and liabilities.