The Sales Manager for Smith Exports Is Deciding on the Firm's

question 103

Multiple Choice

The sales manager for Smith Exports is deciding on the firm's distribution strategy in several markets.He wants to know which factor is likely to shorten channel length in a particular country.Which of the following factors helps a firm shorten channel length?

• A)entry of large discount superstores
• B)firm's insistence on dealing with wholesalers instead of manufacturers
• C)fragmentation of a retail system
• D)small sales force
• E)smaller sales orders generated from sales calls

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Definitions:

Receivables Turnover

A financial metric indicating how quickly a company collects payments from its customers, calculated as sales divided by accounts receivable.

Cash Cycle

The period between the outlay of cash for purchases and the collection of cash from customers in a business.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a period.

Accounts Payable Turnover

A financial ratio that measures the rate at which a company pays off its suppliers by comparing net purchases to average accounts payable during a period.