Seasonal datings are offered to specific retailers. These retailers ____.
A) do not have the capacity to make sales without seasonal dating
B) do not have the ability to finance a buildup of inventory in advance of the peak selling period
C) are known to be credit-risky
D) are considered a distributive subsidiary of the parent company

Question

Quizplus · Accepted Answer

Seasonal datings are typically offered to retailers that need to finance a buildup of inventory in advance of their peak selling period, such as during the holiday season. These retailers may not have the ability to purchase and hold inventory for an extended period of time without incurring significant financing costs, and seasonal dating provides them with an opportunity to defer payment until the time when they expect to generate the bulk of their sales.

Seasonal Datings Are Offered to Specific Retailers