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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Definitions:

Honesty

A moral character trait that involves being truthful, transparent, and free from deceit or theft.

Empowerment

The process of giving power or authority to individuals or groups, enabling them to make decisions, take actions, and control their own destinies.

Participative Leadership

A leadership approach that encourages the participation of team members in decisions, promoting teamwork and shared accountability.