A ______ contract includes a return clause that allows the supplier to buy back unsold inventory up to a specified amount at an agreed-upon price.

Question

Quizplus · Accepted Answer

A buyback contract includes a return clause that allows the supplier to buy back unsold inventory up to a specified amount at an agreed-upon price. Quantity-flexibility contracts involve adjusting the quantity of goods to be supplied based on demand, revenue-sharing contracts involve sharing the revenues earned from the sale of goods, and cost-plus contracts involve reimbursing the supplier for their costs plus a predetermined profit margin. None of these contracts involve a buyback clause. Therefore, the best choice is A.

A ______ Contract Includes a Return Clause That Allows the Supplier