Many Products, Such as Candy, Soft Drinks, and Gum, Are

question 13

Multiple Choice

Many products, such as candy, soft drinks, and gum, are sold via intensive distribution. However, this strategy has a major drawback. What is it?

• A) It maximizes profit margin rather than sales volume.
• B) It encourages customers to shop around for the lowest price.
• C) It promotes a very high degree of brand switching.
• D) The manufacturer must give up a good degree of control over pricing and product display.
• E) It gives customers fewer opportunities to find the product.

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Definitions:

Endorsee

One who receives an endorsement.

Endorsement

is the act of endorsing, which can include a signature or instruction written on the back of a negotiable instrument, or a public expression of support.

Materially Altered

Refers to significant changes made to a document or item that affect its value, function, or condition, often rendering it void or voidable.

Holder In Due Course

A holder in due course is a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be asserted against the original parties.