Your Way, Inc.
Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company sells men's clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date. Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix. To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc. The sewing machines are considered ____ for Your Way.
A) raw materials
B) accessory equipment
C) component parts
D) process material
E) major equipment

Question

Quizplus · Accepted Answer

The sewing machines are considered major equipment for Your Way, Inc. because they are essential for the production of the company's products, which in this case are men's clothing and accessories. Major equipment refers to large tools or machinery used in the production process, which is exactly the role sewing machines play in a clothing manufacturing facility.

Your Way, Inc. Eric Buys Companies That Are Small or Companies in Financial