Pressuring distributors to accept more goods than they can sell is:
A)a method of manipulating liabilities.
B)channel stuffing.
C)engaging in artificial trading.
D)a method of manipulating expenses.

Question

Quizplus · Accepted Answer

Channel stuffing is a method used by companies to artificially inflate their sales figures by pressuring their distributors or retailers to accept more goods than they can sell. This increases the company's revenue in the short term, but can lead to long-term problems such as inventory overstock, decreased demand, and reputational damage. Manipulating liabilities and expenses are also unethical practices, but they are not specific to the act of channel stuffing. Artificial trading is not a commonly used term and is not directly related to this scenario.

Pressuring Distributors to Accept More Goods Than They Can Sell