A footwear wholesaler buys truckloads of athletic shoes from the manufacturer and sells smaller quantities to retailers throughout the Midwest, who then sell the athletic shoes to consumers in their stores. Which benefit of marketing intermediaries does this example illustrate?
A) Efficiency and assortment of goods
B) Instant sales infrastructure
C) Breaking bulk
D) Assumption of credit risks
E) Providing valuable marketing information
Question 2
The gift shop chain that Heidi started has since been incorporated. Which of the following best describes the liability that Heidi has as the primary stockholder in this corporation?
A) Heidi has no responsibility if the business fails and will still be able to get her initial investment back.
B) Heidi may have to give up her car and house if the corporation fails in order to cover the debts of the corporation.
C) The other stockholders will be able to seize Heidi's personal money but not her primary residence in the event that the business fails.
D) Heidi's personal assets will be protected in the event that the corporation fails, although she could lose her entire initial investment.
E) Heidi will only be liable for losses that develop from decisions she made about the daily business operations.
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Photographer unknown, Man with Big Shoes.
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