How can intermediaries impact a company's supply chain?
What will be an ideal response?
Intermediaries can often perform marketing functions better than the producer. While the producer can perform its own distribution functions if the market geographic area is small, customers' needs are specialized, and risk levels are low, intermediaries generally provide more efficient means of distribution if customers are widely dispersed or if special packaging and storage are needed.
Merchant middlemen take ownership of the goods they distribute which helps a company decrease risk. Agents or brokers do not take ownership and assume less market risk than do merchant middlemen.
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Why do effective negotiators avoid using price as a negotiation tool?
What will be an ideal response?
Newt, a gun dealer, offers to sell a rare civil war musket to Rush, another dealer, for "$15,000, insurance and shipping paid by buyer." Rush responds, "I accept. Insurance and shipping costs divided equally between seller and buyer." The parties:
a. do not have a contract since the acceptance violated the mirror image rule. b. do not have a contract since Rush's response was a counteroffer. c. have a contact and, in the majority of states, the terms of the offeree control. d. have a contract and, in the majority of states, the different terms will cancel each other out.
The buyer of a listed American option has which of the following rights?
I. the right to change the expiration date II. the right to change the strike price III. the right to resell the option IV. the right to let the option expire unexercised A) I and III only B) III and IV only C) I, III and IV only D) II, III and IV only
What is the impact on the accounting equation of recording a payment to a supplier on account?
A. Both assets and liabilities decrease. B. Both assets and stockholders' equity decrease. C. Liabilities decrease and stockholders' equity increases. D. Liabilities increase and stockholders' equity decreases.