Suppose You Have Been Making Your Own Soaps and Lotions

question 48

Multiple Choice

Suppose you have been making your own soaps and lotions and selling them to friends and family. You would really like to expand your company and be able to sell your items in retail stores across Canada. Which is the best distribution channel for you to pursue?

• A) consumer direct
• B) retail channel
• C) agent to wholesaler to retailer channel
• D) two-step distribution

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Definitions:

Non-Eligible Dividends

Dividends that do not qualify for the enhanced dividend tax credit in certain jurisdictions, often associated with smaller businesses.

Average Tax Rate

The proportion of total income that an individual or corporation pays in taxes, calculated by dividing the total tax by the taxable income.

Interest Income

The revenue earned from deposit accounts or investments through the interest payments received.