One of the Reasons Why the Direct Channel Is Often

question 55

Multiple Choice

One of the reasons why the direct channel is often used in the distribution of organizational goods is that

• A) their pricing plans to achieve a target return of investment require direct channels of distribution.
• B) there is a lack of stabilization of price and margin.
• C) a number of intermediaries are required for their sales.
• D) they need a great deal of presale and post sale services.

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Definitions:

Internally Restricted

Funds or assets within an organization that are designated for a specific purpose by the entity's management, not external restrictions.

Externally Restricted

Funds or resources that are restricted in use by external parties or agreements, often specified for particular purposes or projects.

Diversity

The inclusion of different types of people (such as people of different races, cultures, or genders) in a group or organization.

Abundance

The situation in which there is more than enough of a particular resource or commodity available.