"Channel stuffing" involve a. Shipment of products now no longer ordered.
The required details for Channel stuffing in given paragraph
Channel stuffing is a misleading enterprise exercise utilized by a corporation to inflate its income and profits figures with the aid of using intentionally sending outlets alongside its distribution channel greater merchandise than they're capable of promote to the public. Channel stuffing usually could take area without delay previous to a reporting duration together with quarter-give up or year-give up, in order that management, afraid of horrific effects to their compensation, can "make their numbers." Channel stuffing refers back to the exercise of a corporation transport greater items to vendors and outlets alongside the distribution channel than give up-customers are possibly to shop for in an inexpensive time duration.
This is typically performed with the aid of using imparting beneficial incentives, consisting of deep discounts, rebates, and prolonged price terms, to influence vendors and outlets to shop for portions in extra in their contemporary needs.
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Complete question
7. Management has been found involved in many fraudulent schemes; a common one is "channel stuffing." What does "channel stuffing" involve?
a. Shipment of goods not ordered.
b. Overly complex transactions.
c. Growth through stock acquisitions.
d. Management compensation schemes.
