A Short Channel of Distribution Is Preferred When Trying to Retain

question 14

True/False

A short channel of distribution is preferred when trying to retain existing customers, but a long channel of distribution is preferred when trying to acquire new customers.

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Definitions:

Depreciated

The process of allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Appraised Value

An estimation of the fair market value of an asset or property, typically determined by a professional appraiser.

Boot

Additional value or cash that balances the value of the assets being traded in a barter or exchange transaction.

Fair Market Value

Fair Market Value is the estimated price at which an asset would change hands between a willing buyer and seller, neither being under compulsion to buy or sell and both having reasonable knowledge of the relevant facts.