There Are Very Few Channels to Distribute MNKY Corporation's Product

question 15

Multiple Choice

There are very few channels to distribute MNKY Corporation's product to rural New Brunswick.The company has therefore become dependent upon TRK Shipping to distribute its product.The only alternative shipper makes a deal with TRK Shipping to not bid down the contract price.The alternative shipper is applying a(n) ________ strategy on behalf of TRK Shipping.

• A) withholding
• B) usage
• C) influence pathway
• D) withholding and influence pathway
• E) usage and influence pathway

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Definitions:

Fair-Value Hedge

A hedge of the exposure to changes in fair value of an asset or liability or an unrecognized firm commitment, which could affect profit or loss.

Forward Contract

a financial agreement between two parties to buy or sell an asset at a future date for a price agreed upon today, commonly used for hedging and speculation.

Gross Method

The gross method is an accounting practice whereby discounts are not considered in the recording of purchases; discounts taken are recorded as income.

Forward Contract

A specialized agreement crafted between two parties to transact an asset at a certain price on a future agreed date.