Which of the Following Is True of Distributors

question 5

Multiple Choice

Which of the following is true of distributors?

• A) The use of distributors increases the exporter's control over the price buyers are charged.
• B) They are compensated with a fixed salary plus commissions based on the value of their sales.
• C) They are seldom required to take ownership of the merchandise when it enters their country.
• D) They can stunt the growth of the exporter's market share by charging very high prices.

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Definitions:

Perceived Risk

The potential for loss or adverse outcomes that consumers or businesses believe exists when deciding on a purchase or investment.

Pro Forma Financial Statement

Financial statements based on hypothetical scenarios or projections, used to forecast a company’s financial performance.

Financial Forecast

A projection or estimate of a company's future financial performance based on current trends, historical data, and anticipated events.

Cash Flow Statement

A financial document that provides aggregate data regarding all cash inflows a company receives from its ongoing operations and external investment sources, as well as all cash outflows that pay for business activities and investments during a given period.