The Most Indirect Channel for Consumer Products Incorporates Agents, Wholesalers

question 19

Multiple Choice

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

• A) are only a few large manufacturers but many small retailers.
• B) are low-cost, low unit volume goods.
• C) is too large an inventory to be carried by wholesalers.
• D) are many small manufacturers and many small retailers.
• E) are many manufacturers with a limited inventory competing for a small group of retailers.

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Definitions:

For-Profit Corporations

Businesses that are established to generate profit for their owners, with revenues exceeding costs.

Laws

The system of rules created and enforced through social or governmental institutions to regulate behavior.

Common Law

A body of legal principles that derives from court decisions over time rather than from statutes or constitutions, emphasizing precedent in judicial decisions.

Creditor

An individual or institution that lends money or extends credit to another party, known as the debtor.