Which of the Following Statements Is True of a Traditional

question 34

Multiple Choice

Which of the following statements is true of a traditional distribution structure?

• A) The distribution system is national in scope.
• B) The relationship between the importer and any middleman is similar to that found in a mass-marketing system.
• C) The idea of a channel as a chain of intermediaries performing specific activities and each selling to a smaller unit beneath it until the chain reaches the ultimate consumer is common.
• D) Independent agencies providing functions such as advertising, marketing research, and financing are a part of this distribution structure.
• E) The marketing system develops around the philosophy of selling a limited supply of goods at high prices to a small number of affluent customers.

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Definitions:

Debt to Equity

A financial ratio indicating the relative proportions of shareholders' equity and debt used to finance a company's assets.

Ownership of Partnership

Ownership of a partnership refers to the proportionate share of rights, interests, and responsibilities in a partnership business, held by each partner.

Bonita's Share

A specific portion or allotment of a larger amount or entity that is designated or attributed to a person named Bonita.

Whole Business

A term often used in finance and economics referring to considering all aspects and operations of a business entity as a total entity.