A Critic Claimed That a Business That Neither Manufactures nor Sells

question 79

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.

Identify the different types of power in channel relationships and their impact.

Understand the goal alignment and misalignment in marketing channels.

Comprehend the principles of cooperative and competitive relationships within the supply chain.

Understand the basic concepts and terminology related to supply chain and inventory management, such as advanced shipping notices, just-in-time (JIT) systems, quick response (QR) inventory systems, and radio frequency identification (RFID) tags.

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Definitions:

Consumer Arbitration Clause

A provision in a contract that requires disputes to be resolved through arbitration rather than litigation in court, often found in consumer agreements.

Class-Action Basis

A lawsuit where a group of people with similar grievances combine their complaints into a single lawsuit against a defendant, alleging common law violations.

Malpractice Case

A legal case brought against a professional, such as a doctor or lawyer, for negligence or incompetence.

Motion for a New Trial

A legal request made by a party in a trial to have the trial heard again, either in part or in full, due to errors or new evidence.