In Terms of Channel Length,the More Fragmented the Retail System,the

question 41

True/False

In terms of channel length,the more fragmented the retail system,the less expensive it is for a firm to make contact with each individual retailer.

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Definitions:

Retention Ratio

The proportion of net income that is retained by a company rather than distributed to its shareholders as dividends.

Payout Ratio

The proportion of earnings a company pays to its shareholders in the form of dividends, expressed as a percentage of the company's total earnings.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Internal Growth Rate

The maximum growth rate a firm can achieve without resorting to external financing.