Which of the Following Statements Regarding Corporate Vertical Marketing Systems

question 63

Multiple Choice

Which of the following statements regarding corporate vertical marketing systems is most accurate?

• A)successive stages of production and distribution are under shared ownership with all links in the marketing chain sharing title to the goods.
• B)corporate vertical marketing systems can use forward integration or backward integration but not both.
• C)corporate vertical marketing systems reduce distribution costs but also limit control.
• D)vertical marketing systems result in increased capital investments and fixed costs.
• E)corporate vertical marketing systems are only affective with low-end consumer goods.

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Definitions:

SUTA Rate

The rate imposed on employers by a state to fund unemployment benefits, varying by state and the employer's claim history.

Interstate Commerce

Refers to any business or trade activity that crosses state lines, regulated by the federal government in the United States.

Federal Income Tax

A fiscal duty assessed by the federal authority on the annual revenues of people, firms, trusts, and assorted legal entities.

FICA Rate

The total percentage of Social Security and Medicare taxes that must be paid by both employees and employers under the Federal Insurance Contributions Act.