One of the Reasons That Channels of Distribution Often Pose

question 64

Multiple Choice

One of the reasons that channels of distribution often pose longevity problems is that most middlemen _____.

• A) do not maintain sufficient inventory to serve customers
• B) lack product knowledge resulting in low sales volume
• C) have little loyalty to their vendors
• D) tend to slow down distribution to extract higher commissions
• E) do not have sufficient knowledge of the target market

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Definitions:

Income Yield

The income returned on an investment, usually expressed as a percentage of the amount invested.

Cumulative Gain

The total amount of profit gained over a period of time from an investment or series of investments.

Semi-Annual Dividend

A payment made to shareholders that is distributed twice a year from a company's earnings.

Total Return

The overall gain or loss on an investment over a specified time period, including interest, dividends, and capital gains.