A Critic Claimed That a Business That Neither Manufactures nor Sells

question 97

Multiple Choice

A critic claimed that a business that neither manufactures nor sells directly is doomed because it is forced to compete exclusively on price.Which of the following is the BEST criticism of this argument?

• A) It ignores the fact that improvements in wholesaler efficiency are relatively easy to duplicate.
• B) It fails to demonstrate that traditional retailing businesses are also in jeopardy.
• C) It fails to recognize the possibility that wholesalers can add value to different partners in the supply chain.
• D) It does not specify how wholesalers can reduce costs most effectively.
• E) It does not account for the fact that wholesalers need to be large in order to take advantage of economies of scale.

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