Why, in Some Cases, Are Distributors Used in Preference of a Dedicated

question 28

Multiple Choice

Why, in some cases, are distributors used in preference of a dedicated sales force?

• A)Greater product knowledge
• B)Usually time based reasons
• C)Usually control based reasons
• D)Usually cost based reasons

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Definitions:

Nonconstant Growth Model

A valuation approach for stocks that assumes a company's dividends will grow at different rates in different periods, unlike the constant growth model.

Initial Growth Period

The phase in a business or project's life cycle characterized by a rapid expansion in revenue and customer base, often necessitating significant investment in marketing and capacity.

Constant Growth Period

The constant growth period refers to a phase in which a company or financial asset's dividends or earnings grow at a steady, unchanging rate.

Preemptive Right

Gives the current shareholders the right to purchase any new shares issued in proportion to their current holdings. The preemptive right enables current owners to maintain their proportionate share of ownership and control of the business.