Question

Sharpe Medical Supply, Inc. has suffered a recent slow-down in sales and is in danger of showing a loss for the 20X1 fiscal year. To boost income, the sales manager encourages two of the company's largest customers to overbuy several slow-moving products at deep discounts. He also offers them extended payment terms, some of which delay payment until the end of 20X2. This is an example of what type of scheme?a. Channel stuffingb. Discount extensionc. Sales re-routingd. Long-term contracts

Answer 1

a. Channel stuffing

Explanation:

Channel stuffing -

It is a type of illusory business tacketics , which is used by the company in order to increases the sales of the company , is referred to as channel stuffing .

Where more products are send to the retailers , than sold to the public .

The method is used to increase the numbers of the goods and services , just before the ending year , as the exact figures might hamper the sale of the next year .

Hence , from the given scenario of the question ,

The correct option is a. Channel stuffing .