Despite Its Usefulness, Industrial Classification Data Pose Some Disadvantages

question 21

Multiple Choice

Despite its usefulness, industrial classification data pose some disadvantages. Which of the following is an example of a limitation of the North American Industry Classification System (NAICS) ?

• A) Frito Lay maintains its own network of logistics and supply chain services and often shifts products to other Frito Lay manufacturing facilities. The NAICS could overstate the shipments since it has no way to account for products that are shipped between two establishments within the same firm.
• B) The NAICS categories the industry into 20 sectors which is fewer than provided by the SIC system.
• C) The NAICS data is provided every 10 years, so the results are not very current.
• D) The NAICS data is less current than the SIC system.

---

Definitions:

Applicable Law

The set of laws and regulations that are relevant and enforceable in a given legal matter or jurisdiction.

Due Process Requirements

Legal standards that require the government to respect all the legal rights owed to a person according to the law, including fair procedures.

In Personam Jurisdiction

A court's power to bring a person into its adjudicative process; jurisdiction over the person.

Minimum Contacts

A legal standard that determines when it is appropriate for a court in one jurisdiction to assert personal jurisdiction over a defendant from another jurisdiction.