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:

Significant Influence

Control exerted by an investor over a subsidiary or associate, typically through ownership of a substantial portion of voting stock, allowing the investor to affect financial and operating policies.

Equity Method

An accounting technique used by a company to record investments in other companies where it has significant influence but does not have full control.

Consolidated Financial Statements

Financial statements that combine the financial information of a parent company with its subsidiaries to present a single set of statements for the entire group.

FVTPL

Fair Value Through Profit or Loss, an accounting strategy whereby financial assets are valued at their current market price, with changes in fair value recorded in the profit or loss statement.