Organizations Have Three Options When It Comes to Distribution Intensity

question 9

Essay

Organizations have three options when it comes to distribution intensity.Name and briefly describe these three levels.Give examples of two products that logically would be distributed at each level of intensity.

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Definitions:

Fair Value

The sum fetched from the sale of an asset or spent on the transition of a liability in a smooth transaction involving market participants at the time of assessment.

Foreign Currency Nonmonetary Assets

Assets that are not in cash and are not expected to be converted into cash in the near future, valued in a currency other than the entity's functional currency.

Historic Rate

The exchange rate at which a transaction was executed in the past, used for recording foreign currency transactions in financial statements.

Non-Free-Standing Subsidiaries

Entities that are significantly controlled or wholly owned by another firm but lack the independent structure or operations typically associated with subsidiary companies.