Direct Distribution Refers to Connecting Directly with Customers and Handling

question 74

True/False

Direct distribution refers to connecting directly with customers and handling the final sale of product and/or the delivery of services without the assistance of a channel intermediary.

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, where the investment is recorded at original cost and adjusted to reflect the investee's changes in net assets.

Dividends

Payments made by a corporation to its shareholder members, typically from profits or retained earnings, and often in the form of cash or stock.

Income

The financial gain earned or received by an entity within a specified timeframe, typically a result of employment, investments, or business operations.

Intra-entity Gross Profit

The profit made from transactions between divisions or units within the same company before external sales.