Donna runs a manufacturer’s branch office. Which of the following must

QUESTION

Donna runs a manufacturer’s branch office. Which of the following must be true about the office’s function?

A) It is a type of limited-function merchant wholesaler.
B) It is also known as a rack jobber.
C) It provides the same functions as cash-and-carry wholesalers.
D) It carries no inventory.
E) It has offices for sales representatives.

ANSWER

Answer: E
Explanation: E) Manufacturers’ branch offices are owned and managed by a manufacturer that not only has offices for sales representatives but also carries an inventory from which the staff can fill orders. These are a manufacturer-owned intermediary.