An Example of a Supplier That Used Its Bargaining Power

question 154

Multiple Choice

An example of a supplier that used its bargaining power to charge high prices to its customers is

• A) Wal-Mart, which required many of its suppliers to alter their distribution systems to accommodate Wal-Mart's need to control the flow of goods to its stores.
• B) the firms that supply paper napkins to McDonald's restaurants.
• C) the Technicolor Company, the sole producer of cameras and film that movie studios needed to produce color movies in the 1930s and 1940s.
• D) the publishers of the Encyclopedia Britannica.

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Definitions:

Compounded Monthly

Interest calculation method where the interest earned each month is added to the principal, affecting future interest calculations.

Loan

A sum of money borrowed that is expected to be paid back with interest.

Compounded Annually

Interest on an investment is calculated once a year and added to the principle, increasing the amount the interest is calculated on the following year.

Scholarships

Financial aid awards given to students to support their education, typically based on academic achievement, talent, or other criteria.