Customer Restrictions

question 18

Multiple Choice

Customer restrictions:

• A) Are prohibited by the Robinson-Patman Act
• B) Are implemented through exclusivity
• C) Allow distributors to sell to other distributors
• D) Specify the type of business the reseller may or may not serve
• E) Limits distributors to only the firm's largest accounts

---

Definitions:

Technically Insolvent

A situation where an entity's liabilities exceed its assets, indicating it cannot currently meet its debt obligations with its available assets.

Firm's Assets

All the resources owned by a company, including cash, investments, property, and inventory, that have value and can be used to meet its financial obligations.

Firm's Debt

The total liabilities or financial obligations incurred by a company to finance its business operations and growth.

Technically Insolvent

A situation where a company cannot meet its short-term financial obligations even though its total assets may exceed its total liabilities.