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

---

Definitions:

Initial Investment

The amount of money used to start a project, purchase an asset, or initiate operations.

Cash Inflows

Money or funds entering a business from various sources like sales, investments, or financing.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization, such as purchasing equipment or acquiring another business.

Discounted Cash Flow

A valuation method used to estimate the value of an investment based on its expected future cash flows, adjusted for the time value of money.