Answer the following statements true (T) or false (F)

Question

1. A supplier is a person or an organization that provides materials or labor to consumers.
2. Far East Chop House is an American restaurant that purchases beef from a Nebraska company that raises Japanese cattle. The Nebraska company would best be described as a distributor for the Far East.
3. Distributors have been hurt by the rise in popularity of the Internet.
4. Strategic allies may be organizations that are traditional rivals but combine their efforts to overcome a new competitor or other threat in the environment.

Answer 1

1. False
A supplier is a person or an organization that provides supplies like raw materials, services, equipment, labor, or energy to other organizations, not consumers.
2. False
A supplier is a person or an organization that provides supplies like raw materials, services, equipment, labor, or energy to other organizations, as the cattle raiser provides beef to the restaurant.
3. True
The rise in popularity of the Internet has allowed manufacturers of cell phones, for example, to cut out the “middleman,” the distributor, and to sell to customers directly.
4. True
Companies, and even nonprofit organizations, frequently link up with other organizations (even competing ones) in order to realize strategic advantages. The term strategic allies describes the relationship of two organizations who join forces to achieve advantages neither can perform as well alone.