Resale Restrictions Refer to When a Supplier

question 74

Multiple Choice

Resale restrictions refer to when a supplier

• A) requires a channel member to sell only its products.
• B) requires a channel member to finance all loans through the seller's bank.
• C) stipulates to whom distributors may resell the supplier's products and in what specific geographical areas or territories they may sell.
• D) attempts to sell used or pre-owned products as new.
• E) attempts to sell used products that have expired or will soon become obsolete without informing the buyer.

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Definitions:

Return on Total Assets

A profitability ratio that measures the net income produced by the total assets of a company during a period, indicating how efficiently a company uses its assets to generate earnings.

Long-term Investment Transactions

Long-term Investment Transactions involve the buying or selling of investments, such as stocks, bonds, or real estate, intended to be held for a period longer than a year for capital gains or investment income.

Journal Entries

Recorded transactions in the accounting books of a business, capturing all the financial activities and their effects on the company's financial position.

Operating Cycle

The period of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sale.