A Channel That Includes Both a Manufacturers' Agent and an Industrial

question 37

Multiple Choice

A channel that includes both a manufacturers' agent and an industrial distributor is appropriate under which of the following circumstances?

• A) When the firm wants specialized personnel to follow up the work of the sales force
• B) When the marketer wishes to enter a new geographic market but does not wish to expand the existing sales force
• C) When only one or two channels of distribution are available for products
• D) When the sales force is large and the marketer is thinking of cutting it down
• E) When customers are highly concentrated in one geographic area

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Definitions:

Gain/Loss

The financial result from the sale of assets or investments, measured as the difference between the selling price and the purchase price.

Purchased

Acquired by paying money or its equivalent; involves obtaining ownership of a good or service in exchange for monetary value.

MAGI

MAGI stands for Modified Adjusted Gross Income, a measure used in the U.S. tax code to determine eligibility for certain tax benefits by modifying the adjusted gross income with specific additions or deductions.

Net Investment Income

The income received from investment assets (like stocks, bonds, mutual funds) after deducting related expenses.