Which of the Following Statements About Intermediaries in a Distribution

question 57

Multiple Choice

Which of the following statements about intermediaries in a distribution channel is true?

• A) As much as possible, a producer of goods or services should try to avoid using intermediaries in order to keep more profits.
• B) For many producers, partnering with the right intermediaries can result in more sales and higher profits.
• C) By law, producers of goods or services are required to use intermediaries.
• D) Intermediaries are always able to perform the distribution functions more effectively and less expensively than a producer of goods and services.

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Definitions:

Income

The money received, especially on a regular basis, for work or through investments.

Fair Insurance Policy

An insurance contract that is considered equitable, offering reasonable terms, coverage, and protection for all parties involved.

Premium

The amount paid for an insurance policy or the difference above the nominal or face value of a security.

Expected Value

The predicted value of a variable, calculated as a sum of all possible values each multiplied by the probability of its occurrence.