Which of the Following Is True of a Corporate Vertical

question 57

Multiple Choice

Which of the following is true of a corporate vertical marketing system?

• A)It unites independent retailers for the purposes of pool buying to improve their competitive position.
• B)It has a strong channel leader at or near the end of the channel.
• C)It is exemplified by the franchise system of a popular apparel store.
• D)It involves a manufacturer's single ownership of two or more levels of a channel.

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion, resulting in a constant annual depreciation expense.

Tax Rate

The percentage at which an individual or corporation is taxed by the government, applicable to income, capital gain, or other taxable bases.

IFRS 8

An International Financial Reporting Standard that requires companies to report financial information by business segment to provide a clearer understanding of a company’s performance.

Operating Segment

A component of an enterprise that engages in business activities earning revenues and incurring expenses, whose operating results are regularly reviewed by the enterprise's chief operating decision maker.