Which of the Following Statements About Marketing Intermediaries Is True

question 67

Multiple Choice

Which of the following statements about marketing intermediaries is true?

• A) All channels of distribution must contain at least one marketing intermediary.
• B) Marketing intermediaries and their functions can be eliminated.
• C) Marketing intermediaries survive because they can perform marketing functions faster and more cheaply than producers and consumers.
• D) The costs added to products by marketing intermediaries usually exceed the value they add to products.

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Definitions:

Beta

A metric for assessing the uncertainty, or inherent danger, of an individual security or collective investment compared to the market at large.

Common Stock

Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Risk-Free Rate

The hypothesized return rate of a risk-less investment, often exemplified by the yield found in government securities.

Market Risk Premium

The increased earnings expected by an investor for choosing a risky market portfolio over assets with no risk.