A Firm Would Prefer an Administered Channel System to a Corporate

question 187

Multiple Choice

A firm would prefer an administered channel system to a corporate channel system for all the following reasons except:

• A) managing all manufacturing, wholesaling, and retailing functions in a channel is too challenging.
• B) administered channel systems are more costly to operate than corporate systems.
• C) corporate channel systems offer more control over marketing activities than administered systems.
• D) administered channel systems offer good enough channel cooperation for the firms' distribution needs.
• E) administered channel systems have some of the same benefits of corporate channel systems but without the expense.

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed.

Market Value

The current price at which an asset or service can be bought or sold in the market.

Working Capital

Current assets minus current liabilities; a measure of a company's liquidity, operational efficiency, and short-term financial health.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.