Distributors Differ from Retailers in a Number of Ways

question 131

Multiple Choice

Distributors differ from retailers in a number of ways. First, distributors pay less attention to promotion, atmosphere, and location than retailers do. Second, distributor transactions are usually ________ than retail transactions. Third, the government treats distributors differently in terms of legal regulations.

• A) concise
• B) less profitable
• C) more involved
• D) larger
• E) more complicated

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Definitions:

Distribution Costs

Expenses related to delivering goods from the manufacturer to the end consumer, including transportation and warehousing.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific time, showing assets, liabilities, and shareholders' equity.

Selling Price

The amount of money for which a product or service is sold to customers.

Accrued Loss

Refers to a loss that has occurred but has not yet been recorded in the accounting records through the date of the financial statements.