Separate Performance Evaluations Measure Channel Member Performance Against One or More

question 20

Multiple Choice

Separate performance evaluations measure channel member performance against one or more criteria when:

• A) The number of channel members is very large.
• B) Selective distribution is used.
• C) Exclusive distribution is used.
• D) The number of channel members is very small.
• E) An overall picture of channel member performance is easy to obtain.

---

Definitions:

MC < MR

A condition in which the marginal cost of producing an additional item is less than the marginal revenue earned from selling it, suggesting that increasing production is profitable.

Profit

The financial gain obtained when the revenue from business activities exceeds the expenses, costs, and taxes.

License Fee

A charge paid for permission to use intellectual property, enter a market, or perform certain activities within a regulatory framework.

Economic Profit

The surplus remaining after total costs are subtracted from total revenue, considering both explicit and implicit costs.