Which of these is NOT a valid reason for a firm's deleting its seven-year-old line of ready-to-assemble furniture?
A) A major retailer customer has just dropped the line in favor of a competitor's.
B) This product line casts a poor image on the entire firm.
C) Long-term sales and profit prospects in this product line are poor.
D) The furniture line requires disproportionately large amounts of management time.

Question

Quizplus · Accepted Answer

A major retailer dropping a line in favor of a competitor's does not inherently invalidate the product line itself. It could be a strategic decision by the retailer rather than a reflection on the product line's viability or value to the firm. Other reasons (B, C, D) directly relate to the firm's internal assessment of the product line's impact on its image, financial health, or operational efficiency, making them valid reasons for deletion.

Which of These Is NOT a Valid Reason for a Firm's