A study on ethical practices in purchasing found that smaller firms frequently make agreements with other organizations to purchase each other's goods and services.(This occurs much more frequently with small firms rather than larger firms.) This practice is referred to as
A)exclusive dealing.
B)review marketing.
C)reciprocity.
D)transactional relationships.
E)tying arrangements.

Question

Quizplus · Accepted Answer

The practice of smaller firms making agreements with other organizations to purchase each other's goods and services is commonly known as reciprocity. This practice is a typical form of mutual exchange that occurs mostly with small firms. The two firms agree to purchase each other's products or services in the expectation of gaining a mutual benefit from the arrangement. The practice is ethical and beneficial for smaller firms as they can save on costs, increase demand, and enhance their competitiveness in the market.

A Study on Ethical Practices in Purchasing Found That Smaller