Wal-Mart Stores Depend in Large Part on Their Suppliers to Monitor

question 9

Multiple Choice

Wal-Mart stores depend in large part on their suppliers to monitor Wal-Mart's inventory levels at their various distribution centers.When supplies of a particular product are diminished,it is up to the suppliers themselves to place reorders on behalf of Wal-Mart.This arrangement would reflect the cooperation found in _______________.

• A) diagonal marketing system
• B) traditional marketing system
• C) horizontal marketing system
• D) vertical marketing system

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Definitions:

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.

Arbitrage Pricing Model

A theory for asset pricing that takes into account multiple risk factors and the return of an asset, assuming no arbitrage opportunities.

Characteristic Line

In finance, this is a line generated in a statistical plot to describe how the returns of a security relate to the returns of the overall market, used in the Capital Asset Pricing Model (CAPM).