John Used to Work for a Large, Well-Known Retailer

question 71

Multiple Choice

John used to work for a large, well-known retailer. He left that company to work for a much smaller company, and in doing so, he discovered that the channel functions were handled very differently in the smaller firm. Looking back at his experience, he noticed that larger firms

• A) perform many channel functions themselves.
• B) have less control in the channel.
• C) are generally less efficient.
• D) spend more money wastefully.
• E) use more independent salespeople.

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Definitions:

Game Subscription

A service fee paid regularly to access a library of video games, often providing a range of titles to play without individual purchase.

Sole Proprietorship

A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business.

Additional Capital

Extra funds injected into a business or investment, beyond the initial capital.

Small Business Administration Loan

A type of loan offered by the Small Business Administration (SBA) to help small businesses get started or expand with less stringent qualifying criteria than conventional loans.