Which of the Following Is Likely If the Distribution Channel

question 124

Multiple Choice

Which of the following is likely if the distribution channel for a product in the foreign country is long?

• A) The foreign country buyers pay a high price.
• B) The consumer will pay arms-length price.
• C) The profit margin of the sellers increases.
• D) The intermediaries are motivated to reship the product to another country to earn higher profits.
• E) The seller can increase profit margins by charging a uniform price.

---

Definitions:

Quarterly Journals

Publications that release issues on a quarterly basis, often academic or professional in nature, covering specific field subjects.

Journalized

Refers to the process of recording financial transactions in the chronological order of their occurrence in a company's journal, which is a primary accounting record.

Receipt of Cash

The act of receiving cash during transactions, indicating an influx of funds.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, representing a liability until the obligation is fulfilled.