Steven Managed an Auto Parts Store in the 1990s

question 9

Multiple Choice

Steven managed an auto parts store in the 1990s.At that time,stockouts-failure to have the parts auto mechanics needed to do their work that day-increased the likelihood of the mechanics becoming customers of competing auto supply stores.To avoid this problem and keep his business customers,Steven most likely

• A) canceled orders and shifted the business to competitors.
• B) increased promotional outlays to overcome customer dissatisfaction.
• C) used exclusive geographic territories to reduce supply chain inefficiencies.
• D) stockpiled inventory, adding to the cost of providing auto parts.
• E) returned to traditional distribution center logistics.

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Definitions:

Dealer Market

A financial market where dealers buy and sell securities for their own accounts, acting as principals in the transaction.

Securities

Financial instruments that represent either ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives) that can be bought and sold.

Primary Market

The financial market where new securities are issued and sold for the first time, typically through public offerings or private placements.

Controller

A senior financial officer responsible for managing the accounting operations of a business, including financial reporting and budgeting.