Scenario 13.2 Use the following to answer the questions. Star Supplies, Inc. manufactures commercial-grade floor cleaners, such as vacuums and floor polishers. The firm has recently begun manufacturing other janitorial-related product lines, such as paper products and chemical cleaners. Star Supplies distributes its products in two ways. It sells its vacuum, floor polisher, and janitorial supply products to an independent business that takes title to the products and then sells them to various small businesses throughout the region. Also, Star has a list of large businesses that it distributes to directly, on an as-needed basis. These businesses keep very little inventory and purchase janitorial supplies in small quantities. Recently, Star has decided to add two new service product
lines-paper shredding and a uniform rental service. Clint Rodriguez, the marketing manager, is conducting a meeting to discuss the ways in which Star can strategically manage these new businesses. Star has the choice of marketing the paper shredding service to their large business clients, by picking up the paper as they drop off the other janitorial supplies, or they can buy a small paper shredding business and market to both large and small business customers. With regard to the uniform rental service, Star can either pick up and deliver the uniforms to the small businesses themselves, or contract that out to a third party. Refer to Scenario 13.2. Star Supplies, Inc. is most likely using which of the following to market its vacuum, floor polisher, and janitorial supplies to its small business customers?
A. Wholesalers
B. Retailers
C. Merchants
D. Industrial distributors
E. Manufacturers' agents
Answer: D
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Which of the following statements is true about the ultra vires doctrine?
A. It is the only stringent limitation on the enforceability of contracts entered into by corporations. B. It permits the state attorney general to prevent enforcement of corporate contracts that extend beyond the corporation's authorized powers. C. It permits corporate directors to freely prevent enforcement of unattractive contracts. D. It does not permit the corporation to bring a suit for damages to the corporation against the officers of the corporation who have entered into an ultra vires contract.
Department heads and division managers are examples of __________.
Fill in the blank(s) with the appropriate word(s).
What function of physical distribution enables companies to compensate for dissimilar production and consumption rates and stabilize prices and availability of seasonal items?
A. Materials handling B. Warehousing C. Transportation D. Inventory management E. Order processing
Which of the following statements is false?
a. Entrepreneurs want the authority to make important decisions. b. Management skills are not important characteristics for entrepreneurs to possess. c. Successful entrepreneurs strive to build a successful team around them. d. An entrepreneur can develop the vision of the company over time.