Which of the Following Is True of Changes in the Organization

question 141

Multiple Choice

Which of the following is true of changes in the organization of distribution channels?

• A) Developing new channels seldom causes conflict with a company's established channels.
• B) To remain competitive, product and service producers must use fewer marketing channels.
• C) The growth of the Internet threatens many brick-and-mortar companies with disintermediation.
• D) Companies have fewer channel options today than they did in the past due to economic problems.
• E) Advances in technology have decreased the number of channels available to entrepreneurial firms.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a open market.

Rights Offering

A method by which a company raises capital by giving existing shareholders the right to purchase additional shares at a discount to the market price.

Market Price

The immediate price point at which you can transact a service or asset in the open market.

Outstanding Shares

The total shares of stock that are owned by shareholders, including restricted shares.