What Is the Most Likely Benefit of Choosing a Distributor

question 22

Multiple Choice

What is the most likely benefit of choosing a distributor that a supplier already knows?

• A) Mutual trust
• B) Shared target markets
• C) Ensured profitability
• D) Existing social capital
• E) Similar strategic goals

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Definitions:

Accounting Cycle

The process of recording, classifying, summarizing, and interpreting financial transactions over a fiscal period, culminating in the preparation of financial statements.

Purchasing Cycle

A series of steps that a company goes through to acquire goods or services, from the identification of a need to the approval of the invoice for payment.

Operating Cycle

The period of time it takes for a business to acquire inventory, sell it, and convert the sale into cash.