Which of the Following Is True of Slotting Allowances

question 64

Multiple Choice

Which of the following is true of slotting allowances?

• A)They are discounts offered for purchasing a large number of units.
• B)They are often in the form of price reductions for performing promotional activities.
• C)They tend to add marketing cost to a manufacturer and affect profits.
• D)They are payments made by retailers to manufacturers to allow them to stock the manufacturer's products.

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Definitions:

Proprietorships

Business entities that are owned and operated by a single individual, with no legal distinction between the owner and the business.

Labor Supply

The collective amount of time employees are prepared and capable of working for a specified pay rate, during a certain timeframe.

Perfectly Elastic

A situation in which any small change in price leads to an infinite change in quantity demanded or supplied.

Payroll Tax

Charges instituted on both employers and workers, typically a percentage of the employment remunerations.