Because Gem Supply's Sales Have Continued to Decline, the Jewelry

question 182

Multiple Choice

Because Gem Supply's sales have continued to decline, the jewelry manufacturer has found that the costs associated with maintaining its own five-person sales force are prohibitive. The firm's marketing director begins to look for a small company or individual willing to perform the sales function for Gem Supply in its least productive region, the Far West. The ideal entity would carry complementary but non-competing lines. Such a firm or individual would be classified as a

• A)rack jobber.
• B)manufacturers' agent.
• C)specialty-line wholesaler.
• D)selling agent.
• E)commission merchant.

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Definitions:

Sherman Act

A foundational antitrust law in the United States aimed at preventing monopolies and promoting competition among businesses.

Clayton Act

A United States antitrust law passed in 1914, aimed at promoting fair competition for the benefit of consumers by preventing unethical business practices.

Mergers

The combination of two or more companies into a single entity, typically with the aim of achieving business growth or improving competitive advantage.

Anticompetitive Behavior

Practices that unfairly restrict competition and harm consumers or other businesses.