Your Way, Inc. Eric Buys Companies That Are Small or Companies in Financial

Multiple Choice

Your Way, Inc.
Eric buys companies that are small or companies in financial trouble. He helps these companies turn around and develop a competitive advantage. The company that he recently purchased is called Your Way, Inc. The company sells men's clothing and accessories. Your Way keeps the sewing machines for clothes manufacturing at a separate production facility so that the store location space can be reserved for display and selling.
After looking over the different products available, Eric realized that the company's previous owner was not aware of the product life-cycle because the company kept items that were obviously too old and out of date. Also, because of the high turnover, employees did not have good knowledge of the different product lines and did not know the difference between a product line and a product mix. To move the company forward, Eric thought of the following two measures: first, developing a new product to incorporate into the product mix; and second, eliminating the out-of-date products.
-Refer to Your Way, Inc. Which of the following descriptions should Eric use to best explain the difference between the product line and product mix?

A) The product line is a group of similar products that differ only in relatively minor characteristics, whereas product mix is all the products a firm offers for sale.
B) The product mix is a group of similar products that differ only in relatively minor characteristics, whereas product line is all the products a firm offers for sale.
C) The product line is a group of unrelated products, whereas product mix is all the products a firm offers for sale.
D) The product line is a group of similar products, whereas product mix is all products that are different.
E) There is no difference between a product line and product mix.