Which of the Following Statements About the Choice of Distribution

question 6

Multiple Choice

Which of the following statements about the choice of distribution strategy is true?

• A) The longer a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.
• B) If price is an important competitive weapon and if the firm does not want to see its profit margins squeezed, other things being equal, the firm would prefer to use a longer channel.
• C) The shorter a channel, the greater the aggregate markup, and the higher the price that consumers are charged for the final product.
• D) An international business must use shorter channels in countries where the retail sector is fragmented and longer channels in countries where the retail sector is concentrated.

Perform unit conversions between the Metric and Imperial systems.

Calculate costs based on unit prices and quantities.

Estimate material requirements for projects and purchases.

Calculate physical dimensions related to standard objects and measurements.

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Definitions:

Restraint Of Trade

Legal doctrine that restricts the ability for parties to freely conduct business, often related to antitrust issues and competition law.

Tying Contract

A sales agreement that requires the buyer to purchase another product or service, distinct from the product or service of interest.

Federal Trade Commission Act

A United States law established in 1914 to promote consumer protection and eliminate and prevent anticompetitive business practices.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at preventing unfair business practices such as price discrimination, exclusive dealings, and mergers that significantly lessen competition.