Which of the Following Should Be the First Step in Distribution

question 160

Multiple Choice

Which of the following should be the first step in distribution planning?

• A) identifying the channel leader
• B) determining a distribution budget
• C) developing distribution objectives
• D) evaluating the internal and external environments
• E) determining the desired level of distribution intensity

Understand the fundamentals of preparing and managing cash flow forecasts and their significance to the overall budgeting process.

Understand the key components and differences in budget structures between merchandisers and manufacturers.

Identify and describe the roles and responsibilities within the budget preparation process in companies.

Match key budgeting terms with their definitions to understand various types of budgets and their purposes.

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Definitions:

Capital Stock

The total amount of stock that a company is authorized to issue, representing ownership in the company.

Cumulative Preferred Stock

Preferred stock that, if the corporation doesn’t pay the specified percentage, has the unpaid amount (the dividend in arrears) carried over to the following year or years.

Capital Stock

The total amount of shares that a corporation is authorized to issue to shareholders, representing the primary source of equity financing for the company.

Cumulative Preferred Stock

A type of preferred stock that entitles the shareholder to receive dividends that were missed in the past before any dividends are paid to common stock shareholders.