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.
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