How May a Company Control a Channel of Distribution

question 117

Multiple Choice

How may a company control a channel of distribution?

• A)A franchise
• B)Exclusive dealing arrangements
• C)Vertical integration
• D)All of the above are methods of control

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Definitions:

Business Tax

Taxes imposed on the income or profit of businesses, varies by country and the type of business.

Demand Curve

A graphical representation of the quantity of a good or service demanded by consumers at various prices, typically downward sloping indicating an inverse relationship between price and quantity demanded.

Average Revenue Curve

A graphical representation showing how the average revenue per unit sold changes with changes in the quantity of the product sold.

Marginal Revenue Curve

A graphical representation showing the additional revenue a firm can earn by selling one more unit of a good or service.