Colin Is Convinced That His Product Idea Has Tremendous Potential

question 158

Multiple Choice

Colin is convinced that his product idea has tremendous potential. He has decided to produce the product himself, but plans to use other firms who specialize in storing and transporting to help him move the product along its path to the final consumer. These specialists Colin uses will be part of his

• A) wheel of retailing.
• B) market network.
• C) channel of distribution.
• D) franchise system.

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Definitions:

Stock Dividend

A dividend payment made to shareholders in the form of additional shares of stock, rather than cash.

Retained Earnings

Profit that remains after dividends are paid, which is reinvested in the company or used to pay off debt.

Treasury Stock

Shares of a company's own stock that it has reacquired but not retired, which do not pay dividends and have no voting rights.

Cash Dividend

A payment made by a company out of its profits to its shareholders in the form of cash.