Company X and Company Y are both distributors for ABC Widgets,and each firm has been given a specific territory by ABC.Company X recently sold an ABC product to a customer located in Company Y's territory.As a result,Company X must reimburse Company Y for the sale.Which term best describes this situation?

Question

Quizplus · Accepted Answer

Profit pass-over arrangement describes a situation where one company compensates another for sales made in the latter's designated territory, as seen in the scenario between Company X and Company Y.

Company X and Company Y Are Both Distributors for ABC