The Partnering for Success Feature in Chapter 13 Focuses on Threadless

question 34

Multiple Choice

The Partnering for Success feature in Chapter 13 focuses on Threadless, the popular community-centered T-shirt design site. According to the feature, at one point during its early growth, Threadless almost collapsed under the weight of operational problems. Threadless solved the problem by ________.

• A) hiring professional managers
• B) replacing the founder CEO with a seasoned CEO from an established company
• C) hiring a consulting firm
• D) selling a minority interest to a venture capital firm, which provided Threadless operational assistance
• E) merging with Zappos and folding its operations into Zappos' operations

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Definitions:

Direct Labor Cost

The compensation given to employees who are directly engaged in manufacturing goods or providing services.

Direct Materials Cost

Direct Materials Cost is the expenditure for raw materials that are directly traceable to the production of a specific product or service.

Payment of Dividends

The distribution of a portion of a company's earnings to its shareholders as determined by the company's board of directors.

Factory Overhead

Indirect costs related to manufacturing, such as utilities, maintenance, and salaries of supervisory personnel not directly involved in production.