Which of the Following Is the Best Example of a Direct

question 85

Multiple Choice

Which of the following is the best example of a direct channel?

• A) J&L Manufacturing Company sells drapery hardware to The Home Depot's Design Center, and the Design Center then sells it to consumers.
• B) Family Dollar Store sells modeling clay to school-age children.
• C) A wholesaler sells candy to convenience stores, who then sell it to store patrons.
• D) Farmer Mintz sells corn to the Hughes household, who will eat it for supper.
• E) A farmer in Colombia sells flowers to an international broker, who makes sure the flowers reach consumers in the United States.

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Definitions:

Bad Debts

Accounts receivable that a company does not expect to collect and writes off as a loss.

Credit Policy

The guidelines a company follows to determine the creditworthiness of its customers and the terms and conditions of credit it will extend to them.

Bad Debts

Amounts owed to a company that are written off as uncollectible, typically from customers who fail to pay their invoices.

Credit Policy Relaxation

The act of making a company's criteria for extending credit more lenient, aiming to boost sales at the risk of higher bad debts.