Doug is a sales representative who works for a wholesaler. He calls on retailers in his territory on a regular basis and gathers their reactions and experiences with the products Doug's firm distributes. He shares that information with the manufacturer of the products so that they can make necessary improvements in the quality or features of the products. What benefit of intermediaries is best illustrated in this example?
A) Instant sales infrastructure
B) Assumption of credit risks
C) Valuable market information
D) Breaking bulk
E) Efficiency and assortment of goods
Question 2
Darrell inherited a large amount of money from his uncle. Darrell wishes to start a business with his college friend, and his lawyers encourage him to make it a corporation. What is the advantage of forming a corporation instead of a partnership?
A) Limited liability
B) Ease of start-up and administration
C) Pass-through taxation
D) Ability to specify how much profit each owner gets
E) Double taxation
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