Capital Requirements Are Likely to Be Less When Intermediaries Take

question 32

True/False

Capital requirements are likely to be less when intermediaries take on much of the responsibility for promotion in the channel.

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Definitions:

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.

Cash Flows

The total amount of money being transferred in and out of a business, particularly in relation to liquidity.

Payback Period

The amount of time it takes to recover the cost of an investment through its cash inflows.

Payback

The method of calculating the duration required to recover the cost of an investment, emphasizing the time it takes to reach a breakeven point.