Dual Distribution Occurs When

question 59

Multiple Choice

Dual distribution occurs when:

• A) A manufacturer uses more than one channel.
• B) A manufacturer sells its products under different brand names to the same customer.
• C) Two or more different channel structures for the same product exist.
• D) A firm distributes through its own vertically-integrated channel.
• E) A manufacturer sells the same product through two competing retail outlets.

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Definitions:

Underwriter

A professional or company that assesses and accepts the risk of another party, often used in insurance and securities issuing.

Initial Public Offering (IPO)

The first sale of stock by a company to the public, marking the transition from a private entity to a public company.

Gross Spread

The difference between the underwriting expense of a security and the amount received from the selling group.