The Motivating Force for Suppliers to Work with Large Chain

question 74

Multiple Choice

The motivating force for suppliers to work with large chain stores is that the stores have huge ______________ because they can write big orders.

• A) Coercive power
• B) Reward power
• C) Expert power
• D) Referent power
• E) Legitimate power

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Definitions:

Equity Method

An accounting technique used to record investments in associated companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net profit or loss.

Proportionately Adjusted Retained Earnings

Retained earnings adjusted in proportion to ownership interest in a company or investment.

Equity Method

A method of accounting for investments reflecting the investor's share of the earnings or losses of the investee in the investor's financial statements.

Contractual Agreement

A legally binding agreement between two or more parties that outlines the terms and conditions of an arrangement.