What Risk Does a Branded Manufacturer Most Likely Face by Allocating

question 13

Multiple Choice

What risk does a branded manufacturer most likely face by allocating part of its production capacity to private-label products?

• A) complicating the channel strategy
• B) creating a future competitor
• C) reducing licensing income
• D) losing customer trust
• E) depleting inventories

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Definitions:

Picket Lines

A form of protest or demonstration by workers, often during a strike, where they line up outside their place of employment to dissuade others from entering.

Duty of Fair Representation

The legal obligation of a union to represent all members fairly, without bias or discrimination.

Collective Bargaining

The process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment.

Arbitrating

The process of settling a dispute through an impartial third party, whose decision is usually binding.