Manufacturers of national brands generally will also produce products under private labels. This is done because:

The Sherman Anti-Trust Act and other Federal laws require manufacturers to accept private label contracts in order to preserve industry competition and provide consumers with a better choice of products.

Manufacturers of national brands often cannot sell all their output under their own brands.

Most large retailers have backward integrated into manufacturing and use private labels as a way to expand the manufacturer s product mix.

Manufacturers find private labels to be more profitable than their own brands.

None of the above.

Match the given situations to the type of risks that a business may face while taking credit. 1. beta ltd. had taken a loan from a bank for a period of 15 years, but its sales are gradually showing a decline. 2. alpha ltd. has taken a loan for increasing its production and sales, but it has not conducted any research before making this decision. 3. delphi ltd. has an overseas client. the economy of the client’s country is going through severe recession. 4. delphi ltd. has taken a short-term loan from the bank, but its supply chain logistics are not in place. a. foreign exchange risk b. operational risk c. term of loan risk d. revenue projections risk