Explain the Difference Between Direct and Indirect Distribution Channels

question 107

Essay

Explain the difference between direct and indirect distribution channels. Provide an example of each type.

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Definitions:

Share Issuance

The process by which a company distributes new shares to investors, thereby raising capital.

Market Price

The current price at which an asset or service can be bought or sold.

Fair Market Value

The price at which an asset would be exchanged between a willing buyer and seller, each having reasonable knowledge of all the relevant facts.

Fair Value Enterprise Method

A valuation technique that estimates the price at which an entire business would change hands, reflecting the present value of future earnings.