A producer-supplier would most likely pick an agent wholesaling middleman instead of a merchant Wholesaler when the product:
A) is restocked frequently, like dairy products.
B) is made to order, like a presentation guitar.
C) is being sold to geographically dispersed customers.
D) is a technologically complex computer system.
E) has a large gross margin.

Question

Quizplus · Accepted Answer

A producer-supplier would most likely pick an agent wholesaling middleman instead of a merchant Wholesaler when the product is made to order, like a presentation guitar. This is because an agent wholesaling middleman does not take ownership of the product and is therefore not responsible for the risk of unsold inventory.

A Producer-Supplier Would Most Likely Pick an Agent Wholesaling Middleman