Regarding Wholesaling,which of the Following Is True

question 108

Multiple Choice

Regarding wholesaling,which of the following is true?

• A)Merchant wholesalers have higher sales than agent wholesalers,but their costs (as a percent of sales)are over three times as high.
• B)There are many more manufacturers' sales branches than merchant wholesalers.
• C)Manufacturers' sales branches have higher costs than agent wholesalers and account for a smaller percentage of total sales.
• D)Good marketing managers select the type of wholesaler with the lowest cost when planning channels of distribution.
• E)All these answers are correct.

---

Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within a business's operating cycle, whichever is longer.

Company Finance

An area of finance dealing with the sources of funding and the capital structure of corporations, the actions that managers take to increase the value of the firm to the shareholders, and the tools and analysis used to allocate financial resources.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue.

Company Assets

Resources owned by a company that have economic value and can contribute to future profits, such as cash, inventory, and equipment.