The outputs of a manufacturing firm are the inputs of a merchandising business.Select one:TrueFalse
Question
The outputs of a manufacturing firm are the inputs of a merchandising business.
Select one:
- True
- False
Solution
This statement is True.
In the context of economics and business, the outputs produced by a manufacturing firm—including goods and materials—become the inputs for a merchandising business. The manufacturing firm produces products through the transformation of raw materials, which it then sells to merchandising businesses. These businesses, in turn, sell the products to end consumers.
Thus, there's a natural flow in the supply chain where manufacturing firms provide finished goods that merchandising businesses need to operate. Without the outputs from manufacturing firms, merchandising businesses would have no products to sell. This relationship is foundational to the economy and illustrates how different sectors depend on each other for functionality and growth.
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