Which of the Following Statements About Outsourcing Is Most Likely

question 5

Multiple Choice

Which of the following statements about outsourcing is most likely true?

• A) Third-party distributors are typically motivated by monetary rewards and market discipline.
• B) Both wholesalers and manufacturers specialize in cost-effective distribution activities.
• C) Distribution usually involves high entry barriers, so it attracts only the best firms.
• D) Third-party distributors are limited to selling one brand and product line.
• E) Economies of scale are desired by distributors but rarely attained.

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Definitions:

Trademarks

Legally registered symbols, names, or slogans used to identify and distinguish products or services of a particular source.

Trade Names

The commercial names used by businesses to operate in the market, often different from their legal registered names.

Disclosure Statement

A document that outlines important or required information that a company must provide to consumers, investors, or regulatory bodies, particularly regarding financial operations, risks, or conflicts of interest.

Exclusive Territory

A designated area or market where a specific distributor or sales agent has the exclusive rights to sell a particular product or service.