Which of the Following Is an Advantage of Using an Industrial

question 177

Multiple Choice

Which of the following is an advantage of using an industrial distributor?

• A) These firms are easy to control because they work directly for the producers.
• B) Inventory holding costs are minimized because they can store inventory very cheaply.
• C) They are closer geographically to all of the producers' customers.
• D) They possess a high level of technical knowledge about their products.
• E) They help reduce a producer's financial burdens by extending credit to customers.

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Definitions:

Certainty

The state of being sure or confident about something, often used in decision-making scenarios where outcomes can be predicted with high accuracy.

EMV

Expected Monetary Value; a decision-making tool used in risk management to calculate the average outcome of future events.

Perfect Information

Refers to a situation where all relevant data and outcomes are fully known to all parties involved.

Expected Value

The weighted average of all possible outcomes of a random variable, considering the probabilities of each outcome.