Which of the Following Statements Describes the Most Significant Distinction

question 19

Multiple Choice

Which of the following statements describes the most significant distinction between a corporate vertical marketing system and an administered vertical marketing system?

• A)Administered vertical marketing systems gain power through ownership while vertical marketing systems gain power through corporate agreement.
• B)Administered vertical marketing systems gain power through size and influence of one channel member and ownership.
• C)Administered vertical marketing systems achieve coordination at successive stages of production and distribution by the size and influence of one channel member rather than through ownership.
• D)Administered vertical marketing systems gain power through contractual agreement and ownership.

---

Definitions:

Outsourcing

The business practice of hiring external vendors to perform tasks, handle operations, or provide services that are either difficult to manage or outside of the company's core competencies.

Logistics Function

The process of planning, executing, and controlling the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption to meet customer requirements.

Third Party

An entity involved in a transaction or process that is neither the primary nor secondary party, often providing intermediary services or products.

Supply Chain

The interconnected system comprising people, businesses, assets, processes, and technology that takes part in producing and distributing a good, from getting raw materials from the supplier to manufacturing, and finally to the consumer.