The Existence of Reciprocal Arrangements,long-Term Contracts,and in Some Cases,buyer-Seller Relationships

question 221

Multiple Choice

The existence of reciprocal arrangements,long-term contracts,and in some cases,buyer-seller relationships that evolve into supply partnerships,are all examples of

• A)illegal activities that are a common weakness of organizational buying.
• B)illegal activities that result from collusion between buyers and sellers.
• C)activities that are strictly governed by the NAICS.
• D)activities that can result from relationships between buyers and sellers in organizational buying.
• E)activities that result from extreme competition between manufacturers when there are too few suppliers.

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Definitions:

Shares Issued

Refers to the total number of shares that have been allocated and are held by shareholders, including both public investors and company insiders.

Paid-In Capital

The total amount of money that shareholders have invested in a company through the purchase of shares.

Legal Capital

The minimum amount of capital that a company must maintain as required by law, often set to protect creditors.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument as stated by the issuer.