The arrangement of vertical management system in which non-dependent firms for production and distribution works together through contracts is classified as?

Correct answer: B. contractual VMS

  • A. full time VMS
  • B. contractual VMS
  • C. administered VMS
  • D. corporate VMS

Explanation

A contractual vertical marketing system coordinates independently owned production and distribution firms through formal agreements or contracts. Corporate VMS achieves coordination through common ownership, while administered VMS relies on the power of a dominant firm.

Written and checked by , editorLast updated
Report an error

The more specific you are, the faster it gets fixed. A source beats an opinion.

Prefer email? support@testustad.com

About Marketing

Marketing covers how organisations identify customer needs, create value and exchange products or services through suitable markets. Key concepts include market segmentation, targeting, positioning, consumer behaviour, the marketing mix of product, price, place and promotion, branding, product life cycle and differences between marketing and selling.

Practise Marketing

1,700 free Marketing MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Management Sciences questions like this

Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

More Marketing questions