A Firm Becomes a Channel Captain Because It Is the Channel

question 65

Multiple Choice

A firm becomes a channel captain because it is the channel member with the ability to influence the behavior of other members. Influence can take four forms, one of which is

• A) stakeholder position.
• B) familial ties to other channel members.
• C) economic power.
• D) longevity in the industry.
• E) geographic proximity to the manufacturing plant.

---

Definitions:

At A Discount

Refers to buying or selling something below its nominal or face value.

Class B Shares

A classification of stock typically offering fewer voting rights and potentially different dividend policies compared to Class A shares.

Preemptive Rights

The right of existing shareholders to maintain their proportional ownership in a company by purchasing a proportional number of new shares before the company offers them to the public.