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Identify an accurate statement about merchant middlemen

(A) they take title to manufacturers' goods
(B) they are more controllable by manufacturers than agent middlemen
(C) they do not assume the risks of trading
(D) they work on commission amd arrange for sales in the foreign country
(E) they represent the best interests of a manufacturer

User Overthetop
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Final answer:

(A) they take title to manufacturers' goods

Merchant middlemen take title to manufacturers' goods, bear risks associated with ownership, and are concerned with their own interests rather than exclusively representing manufacturers.

Step-by-step explanation:

An accurate statement about merchant middlemen is that (A) they take title to manufacturers' goods. These middlemen, often referred to in business as merchants or merchant intermediaries, actually purchase the goods from manufacturers before selling them to the end-user or retailer.

Therefore, they bear the risk associated with the ownership of the goods, including handling, storage, and the potential for unsold inventory.

By contrast, agent middlemen, mentioned in choice (B), work on behalf of manufacturers or sellers and typically earn a commission without taking title to the goods (as mentioned in choice (D)). Therefore, they do not assume the risks that are inherent in trading and holding inventory.

Also, unlike what is suggested in choice (E), merchant middlemen are primarily concerned with their own interests rather than exclusively representing the best interests of the manufacturer.

Merchant middlemen take title to manufacturers' goods, which means they assume ownership and responsibility for the goods once they are purchased from manufacturers.

They play a crucial role in facilitating the distribution and sales of these goods. Unlike agent middlemen, merchant middlemen assume the risks of trading and work on commission to arrange for sales, making them more independent and less controllable by manufacturers.

However, they still represent the interests of the manufacturer by ensuring the successful sale and distribution of goods.

User Zoltan King
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