Which of the Following Is True of Wholesaler-Sponsored Voluntary Chains

question 43

Multiple Choice

Which of the following is true of wholesaler-sponsored voluntary chains?

• A)They involve a parent company and an independent firm entering into a contractual relationship to set up and operate a business in a particular way.
• B)They involve a group of independent retailers uniting and agreeing to pool buying and managerial resources to improve competitive position.
• C)They involve a wholesaler contracting with a number of retailers performing channel functions for them.
• D)They involve a retailer assuming ownership of a primary manufacturer through the presence of a channel leader.

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Definitions:

Debt-to-Equity Ratio

A financial metric that shows the balance between the equity provided by shareholders and the debt leveraged to support a company's assets.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for its day-to-day operations.

Long-term Liabilities

Financial obligations of a business that are due more than one year in the future, such as bonds payable or long-term loans.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.