West Coast Unlimited Is a Wholesaler That Carries Close to 20

question 249

Multiple Choice

West Coast Unlimited is a wholesaler that carries close to 20 000 products. The company has close to 3000 suppliers and sells its products mostly to business and institutional customers. The company markets its products by relying mainly on sales promotion and advertising. Faced with increasing costs, the company is looking at various ways to reduce expenses. West Coast Unlimited's vice-president feels that the company should shift one of its major distribution centres to a low-rent, low-tax area. Which of the following, if true, would strengthen the vice-president's argument?

• A) West Coast Unlimited recently signed a long-term lease for the distribution centre's current location.
• B) The percentage decrease in taxes is higher than the percentage decrease in rent.
• C) West Coast Unlimited's competitors are also capable of moving to the low-rent, low-tax area.
• D) The political environment in the new area is stable, with no expected changes in tax policy.
• E) Changes in the macroeconomic environment may reduce costs associated with the current location.

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Definitions:

Environmental Factors

Aspects of the environment that can affect a person's health, behavior, and ability to function, or the external conditions that influence the outcomes of a business or project.

Unfavorable Public Images

Negative perceptions held by the public about an organization or individual, often due to controversies or mismanaged events.

Common Threats

General or widespread dangers that affect individuals, organizations, or communities across different contexts.

Outside-Looking-In View

A perspective where individuals analyze or assess a situation as an outsider rather than being directly involved.