Scenario 19

question 102

Multiple Choice

Scenario 19.2 Use the following to answer the questions.The BASF Chemical Company in Germany has developed a new rubberized coating. The product has an application for cell phones and other hand-held electronic devices that gives them protection from falls and scratches. BASF plans to market the product directly to businesses that manufacture the casings for these types of products. BASF currently uses a system of salespeople headquartered in Germany, while its primary business customers are in China.
-Refer to Scenario 19.2. If BASF were to price its product in barrels from the factory, before it is loaded on the carrier, this would be an example of ____ pricing.

• A)buy-back allowance
• B)geographic
• C)F.O.B destination
• D)F.O.B. factory
• E)base-point

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Definitions:

Gastrin

A hormone secreted by the stomach that stimulates secretion of gastric acid.

Stomach

A muscular hollow organ in the gastrointestinal tract of humans and many animals, where digestion of proteins begins.

Liver

The liver is a vital organ that plays a central role in metabolic processes including detoxification, producing plasma proteins, and secreting bile.

Pancreas

A glandular organ in the digestive and endocrine system that produces hormones and enzymes to aid in digestion and blood sugar regulation.