Which of the following explains 'Gain and Risk Sharing Agreements'?
A) The supplier future income is partially determined by the success of the customer's new product in its end markets.
B) The supplier future income is wholly determined by the success of the customer's new product in its end markets.
C) The customer's future income is partially determined by the success of the customer's new product in its end markets.
D) The supplier future income is partially determined by the success of the customer's existing product in its end markets.

Question

Which of the following explains 'Gain and Risk Sharing Agreements'? 
A) The supplier future income is partially determined by the success of the customer's new product in its end markets. 
B) The supplier future income is wholly determined by the success of the customer's new product in its end markets. 
C) The customer's future income is partially determined by the success of the customer's new product in its end markets. 
D) The supplier future income is partially determined by the success of the customer's existing product in its end markets.

Quizplus · Accepted Answer

Gain and Risk Sharing Agreements involve the supplier sharing both the gain and risk with the customer, where the supplier's future income is partially dependent on the success of the customer's new product in the end markets.

Which of the Following Explains 'Gain and Risk Sharing Agreements