A Direct Channel Exists When

question 47

Multiple Choice

A direct channel exists when

• A) producers and end users deal with each other on a one-on-one basis.
• B) the producer and consumer perform numerous channel functions.
• C) a firm reaches different buyers by employing two or more different types of channels for the same basic product.
• D) an intermediary sells to other intermediaries, usually to retailers in consumer markets.
• E) an agent or broker brings ultimate consumers to manufacturers.

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Definitions:

Indifference Curve

A graphical representation in microeconomics showing different combinations of two goods that provide an individual with the same level of satisfaction or utility.

Expected Rate of Return

The anticipated return on an investment, taking into account both the risk of the investment and market conditions.

Standard Deviation

A statistical measure of the dispersion or variability in a dataset, commonly used in finance to quantify the risk associated with a security's price movements.

Risk

The exposure to the possibility of financial loss or variation in the returns of an investment.