DMM Industries, a manufacturer of composite metal products, sells its products using a conventional marketing channel. The company decides to adopt a vertical marketing system to improve its performance. What advantages could this provide?
What will be an ideal response?
Each entity in a conventional channel is a separate business seeking to maximize its own profits, even if this goal reduces profit for the system as a whole. A vertical marketing system, by contrast, acts as a unified system. This would make the company more profitable. VMSs achieve economies through size, bargaining power, and elimination of duplicated services.
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Harbor City Corporation's end-of-year balance sheet consisted of the following amounts: Cash $ 15,000 Accounts receivable $50,000 Property, plant, and equipment 70,000 Long-term debt 40,000 Capital stock 100,000 Accounts payable 20,000 Retained earnings ? Inventory 35,000 What amount should Harbor City report on its balance sheet for total assets?
a. $110,000 b. $155,000 c. $170,000 d. $190,000
Under the indirect method, if a current liability account increases from the beginning of the year to the end of the year, what is the impact of the change on the statement of cash flows?
a. Cash inflow from financing activities is increased; b. Cash inflow from financing activities is decreased; c. Cash inflow from operating activities is increased; d. Cash inflow from operating activities is decreased; e. none of these.
The Income Summary account is a permanent account that will be carried forward period after period.
Answer the following statement true (T) or false (F)
Which tools are used by most individuals for handling the loss exposure of physical damage to their vehicles caused by collisions?
I. Avoidance II. Control III. Retention IV. Insurance A) II and IV only B) I, II, and III only C) II, III and IV only D) I, II, III, and IV