By Limiting the Number of Trading Partners,a Manufacturer Is Most

question 41

Multiple Choice

By limiting the number of trading partners,a manufacturer is most likely able to reduce transaction costs for all of the following reasons EXCEPT having________.

• A) lower travel expenses
• B) fewer but larger transactions
• C) lower reseller turnover rates
• D) fewer but larger sales promotions
• E) lower inventory holding costs

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Definitions:

Assets

Resources owned by a business or individual that have economic value and can provide future benefits.

Venture Capitalist

An investor who provides capital to startup ventures or supports small companies that wish to expand but do not have access to equities markets.

Emerging Businesses

Companies in the early stages of operation, often characterized by rapid growth and development in its sector.

Angel

A lender, usually a successful entrepreneur, who loans money to help new businesses.