Shortening the Channel Will __________ the Amount of Capital Necessary

question 14

Multiple Choice

Shortening the channel will __________ the amount of capital necessary for distribution.

• A) increase
• B) decrease
• C) have no affect upon
• D) slightly decrease
• E) There is no relationship between the length of a channel and capital requirements.

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Definitions:

Capital Balances

The amounts recorded in a company's capital accounts, reflecting the net investment of owners or partners.

Net Income

This is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, showing the company's profitability.

Income Ratio

A financial metric that measures the amount of income generated relative to another financial metric, such as sales or assets.

Net Income

The residual income of a firm after adding total revenue and gains and subtracting all expenses and losses for the reporting period, effectively the company's profit.