Which of the Following Is True of Marketing Channels

question 29

Multiple Choice

Which of the following is true of marketing channels?

• A)In a direct marketing channel,intermediaries take a portion of the purchase price for their services.
• B)The net price derived from the use of indirect marketing channels is much higher than from direct channels.
• C)Direct channels are able to capture most,if not all,of the end-user price.
• D)The cost of direct marketing channels is generally lower for a manufacturer than that of other channels.
• E)Indirect channels incur the highest out-of-pocket marketing and sales expenses for manufacturers.

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Definitions:

SEC

Stands for the Securities and Exchange Commission, a U.S. government agency responsible for regulating the securities markets and protecting investors.

1934 Securities Act

U.S. legislation aimed at regulating the secondary securities market, requiring disclosure of material information related to securities transactions and aimed at combating fraud and manipulation.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, leading to unintended damage or harm.

Audit

A systematic review or assessment of financial accounts, records, or transactions to ensure accuracy, compliance with standards, and to verify reports.