Jeff Wood's Company Buys Machine Tools from Large Producers and Sells

question 206

Multiple Choice

Jeff Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Jeff works for carries inventories of the tools, which reduces capital requirements for the producers. Jeff's company is an example of a(n) ____ in a distribution channel.

• A) direct distributor
• B) manufacturers' agent
• C) industrial distributor
• D) producers' agent
• E) wholesalers' agent

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Definitions:

Licensing Statute

Laws that regulate the issuance of licenses to practice a profession or operate a specific type of business, ensuring compliance with certain standards.

Employment Contract

A formal agreement between an employer and an employee outlining the terms of employment, including duties, compensation, and duration.

Age of Majority

The legally recognized age at which an individual is considered an adult, capable of voting, entering into contracts, and enjoying other civil rights.

Usury

The practice of charging excessive or illegally high interest rates on loans.