What is a contractual vertical marketing system? Give an example of a type of business that works as a contractual VMS
What will be an ideal response?
A contractual VMS consists of independent firms at different levels of production and distribution that join together through contracts to obtain more economies or sales impact than each could achieve alone. Channel members coordinate their activities and manage conflict through contractual agreements. The franchise organization is the most common type of contractual relationship. In this system, a channel member called a franchiser links several stages in the production-distribution process. Almost every kind of business has been franchised — from motels and fast-food restaurants to dental centers and dating services, from wedding consultants and handyman services to funeral homes, fitness centers, and moving services. For example, Two Men and a Truck moving services — "Movers Who Care" — grew quickly through franchising. Started 30 years ago by two brothers with a pickup truck looking to make extra money while in high school, Two Men and a Truck now has a national network of 306 independently owned franchise locations with 1,900 trucks, pulling in $350 million in annual revenues.
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Which formula best represents the first step used to allocate an indirect cost to a cost object?
A. Allocation rate divided by total cost to be allocated B. Cost driver divided by total cost to be allocated C. Cost driver divided by allocation rate D. Total cost to be allocated divided by cost driver
Which of the following is an advantage of a virtual team??
A) ?It is characterized by strong leadership. B) ?It results in increased productivity. C) ?It has unlimited access to various communication media. D) ?It facilitates face-to-face communication.
The initial values for the state probabilities
A) are always greater than the equilibrium state probabilities. B) are always less than the equilibrium state probabilities. C) do not influence the equilibrium state probabilities. D) heavily influence the equilibrium state probabilities. E) None of the above
Both Saturn Technologies and Granite Inc. incur a cost of $200 to manufacture a single unit of a cell phone. However, Saturn Technologies charges a higher price than Granite Inc. does, but it still sells a higher number of phones. What does this imply?
A. Granite Inc. is not charging enough for its product. B. Saturn Technologies creates more economic value than Granite Inc. does. C. Saturn Technologies and Granite have achieved a competitive parity. D. Granite Inc. has a competitive advantage over Saturn Technologies.