A "Channel of Distribution

question 151

Multiple Choice

A "channel of distribution":

• A) usually has three members--a manufacturer, a distributor, and a retailer.
• B) is any series of firms (or individuals) from producer to final user or consumer.
• C) should be as short as possible.
• D) is not involved if a firm sells directly from its own website to final customers.

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Definitions:

Endorsement

The act of signing the back of a negotiable instrument, which allows for the transfer of rights from one party to another or specifies particular conditions of transfer.

Conditional Endorsement

An endorsement on a negotiable instrument that imposes conditions on the use or payment of the instrument.

Payment

The transfer of money or goods from one party to another as compensation or for goods and services received.

Restrictive Endorsement

A limitation placed on a check or other negotiable instrument, specifying conditions under which it can be transferred.