In the Classification of Distributors, _____ Focus on One Line

question 65

Multiple Choice

In the classification of distributors, _____ focus on one line or on a few related lines.

• A)general-line distributors
• B)specialists
• C)combination houses
• D)brokers

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Definitions:

Shortage Costs

Expenses incurred from inventory deficits, including lost sales and additional costs for expedited shipping.

Adjustment Costs

Expenses incurred in the process of modifying a business operation or strategy, including restructuring or equipment changes.

Transaction Motive

The need to hold cash for the purpose of conducting day-to-day business operations.

Float Management

The practice of managing the time difference between the writing of a check and its clearing at the bank, aiming to optimize the use of available funds.