Which of the Following Statements Is True of Selective Distribution

question 102

Multiple Choice

Which of the following statements is true of selective distribution?

• A)It requires cooperation by many intermediaries,including wholesalers and retailers,to achieve maximum coverage.
• B)It can reduce total marketing costs and establishes strong working relationships within the channel.
• C)It can limit market coverage in a specific geographical region.
• D)It suits relatively expensive specialty products.

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Definitions:

Eliminate Unrecognized

The process of removing gains, losses, or other items that have not been realized or acknowledged formally from the financial statements.

Intra-entity Gross Profit

The profit recorded from transactions that occur within the same entity, often eliminated in consolidation.

Eliminate Intra-entity Transfer

The process of removing sales and purchases of goods or services made between companies within the same corporate group in consolidated financial statements.