Pharmaceutical Companies Sell to Hospitals and Clinics Directly

question 149

Multiple Choice

Pharmaceutical companies sell to hospitals and clinics directly.They market their products to large retail chains that distribute the medicines to their stores across the nation.They also sell to drug wholesalers that sell to the remaining independent drugstores in Canada.What method of distribution is used by pharmaceutical companies?

• A)multichannel distribution
• B)vertical distribution
• C)horizontal distribution
• D)direct distribution

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Definitions:

Cash In Hand

The amount of liquid money or physical currency that a company or individual has readily available.

Bills Receivable

Financial documents representing money owed to a business by its customers that is payable within a short period.

Inventories

Quantities of goods and materials that a business holds for the purpose of sale or production.

Quick Ratio

A financial metric indicating a company's ability to meet short-term liabilities with its most liquid assets, excluding inventory.