If a Firm Decides to Contract Its Physical Distribution Functions

question 209

Multiple Choice

If a firm decides to contract its physical distribution functions to third parties that have no managerial authority within the marketing channel, it is using

• A) outsourcing.
• B) sole-sourcing.
• C) logistics.
• D) wholesaling.
• E) distribution services.

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Definitions:

Discontinued Operations

Components of a business that have been disposed of or are being held for sale, separate from continuing operations.

Transitory Component

Temporary fluctuations in financial or economic data that do not reflect long-term trends and are expected to revert over time.

Permanent Earnings Component

The part of a company's net income expected to continue in the future, excluding any extraordinary or one-time events.

Valuation-Relevant

Describes information or data that can significantly impact the valuation of a company's assets, liabilities, or equity.