Which of the following is true of raw materials?

a. They often have a large number of relatively small sellers.
b. They almost always require promotion via mass advertising.
c. They include capital goods such as large or expensive machinery.
d. They have relatively short lives and are less expensive compared to supplies.

ANSWER: a

Raw materials are unprocessed extractive or agricultural productsâ€"for example, mineral ore, timber, wheat, corn, fruits, vegetables, and fish. Because there is often a large number of relatively small sellers of raw materials, none can greatly influence price or supply. Promotion is almost always via personal selling, and distribution channels are usually direct from producer to business user.