What Is the Main Reason for the Distribution System Being

question 22

Multiple Choice

What is the main reason for the distribution system being more complex for the hospitality industry than other industries in general?

• A) There is such a wide variety of products offered
• B) The online third party retailers such as Expedia are now in the mix
• C) Most hospitality organizations are the retailers of the product as well as the manufacturers
• D) They sell intangible goods

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Definitions:

Abandonment Option

In project management and finance, the option to halt a project or investment if it becomes non-viable or unprofitable.

Improve NPV

Strategies or steps taken to increase the Net Present Value of an investment, thereby enhancing its profitability.

Lower Risk

Investments or actions that are considered to have a lower likelihood of resulting in a loss.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds, essentially how much it costs a company to use funds for projects or business activities.