Which of the Following Statements Best Describes the Key Difference

question 197

Multiple Choice

Which of the following statements best describes the key difference between merchant wholesalers and agents and brokers?

• A)Merchant wholesalers don't perform all channel functions,whereas agents and brokers do.
• B)Agents and brokers only deal with consumer channels.
• C)Agents and brokers make their profits based on the sales of merchandise they own,while merchant wholesalers make profits based on fees paid for their services.
• D)Merchant wholesalers take title to merchandise,whereas agents and brokers do not.
• E)Agents and brokers take title to merchandise,whereas merchant wholesalers do not.

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Definitions:

Dividends Paid

The portion of a company’s earnings distributed to its shareholders, usually in the form of cash or additional shares.

Financial Leverage

The use of borrowed capital (debt) to increase the potential return of an investment.

Capital Structure

The blend of loans and shareholder capital utilized by a corporation to support its operational activities and development.

Debt

Borrowed money that is expected to be repaid in the future, typically with interest.