Which of the following describes a disadvantage inherent in the North American Industry Classification System (NAICS) as a source of markets?
A) It is based on a cumbersome geographic arrangement.
B) Manufacturers of multiple products are listed in only one category.
C) The fee charged to use the system precludes many small businesses from using it.
D) Manufacturers get to select the categories under which they are listed.
E) It is too complicated for small business users.

Question

Quizplus · Accepted Answer

Manufacturers of multiple products are listed in only one category in the NAICS, which can limit the system's accuracy and usefulness for market analysis by not fully representing the diversity of a company's operations.

Which of the Following Describes a Disadvantage Inherent in the North