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Glory Cosmetics Wants to Sell Its Products on the West

Question 24

Multiple Choice

Glory Cosmetics wants to sell its products on the West Coast,but does not have either the manufacturing facility or the labor force to meet the increase in demand.It also is worried that building such a big facility could impose a lot of risk on the firm if it turns out that the products are not successful on the West Coast.Glory should probably


A) outsource production by using contract manufacturing.
B) slightly decrease the quality of the product and use the money saved to hire new workers for a second shift.
C) use its credit cards to meet the first couple of payrolls of newly hired workers and then when profits come in from increased sales, pay off the credit cards.
D) seek a small business development loan from the local bank.

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