Which of the Following Statements Describes the Difference Between a Corporate

question 322

Multiple Choice

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

• A) Administered vertical marketing systems gain power through ownership while corporate vertical marketing systems gain power through contractual agreement.
• B) Administered vertical marketing systems gain power through the size and influence of one channel member and through ownership.
• C) Administered vertical marketing systems gain power through contractual agreements and ownership.
• D) Administered vertical marketing systems are usually larger and more profitable than corporate vertical marketing systems.
• E) 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.

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Definitions:

Inventory Days

A financial metric indicating the average number of days a company takes to sell its inventory, reflecting inventory management efficiency.

Net Credit Sales

The total value of sales made on credit, minus returns and allowances, during a specific period.

Average Inventory

A calculation that reflects the average value of inventory over a certain period, often used for financial analysis.

Vertical Analysis

Vertical analysis is a financial analysis method that expresses each line item in a financial statement as a percentage of a base figure from the same statement, facilitating comparison.