The supplier charges a lower price for items being purchased but in turn receives a percentage of the buyer's profits in a ________ contract.

Question

Quizplus · Accepted Answer

In a revenue-sharing contract, the supplier charges a lower price for items being purchased but in turn receives a percentage of the buyer's profits. This is a form of collaboration between the two parties, where both stand to benefit from the success of the project. The buyback contract involves the supplier agreeing to purchase a certain amount of the product back from the buyer, while the quantity-flexibility contract allows the buyer to adjust the quantity ordered based on demand. The fixed-price contract involves a set price for the items being purchased, with no additional agreements for profit-sharing.

The Supplier Charges a Lower Price for Items Being Purchased