A Commonly Used Indirect Channel Moves Product from Producer to Retailer

question 190

Multiple Choice

A commonly used indirect channel moves product from producer to retailer to consumer.This channel is used when the retailer is large and can buy in large quantities from a producer or when

• A)the cost of maintaining inventory is low.
• B)the cost of inventory makes it too expensive to use a wholesaler.
• C)there is little if any seasonal demand.
• D)the risk lies solely with the manufacturer.
• E)the retail outlets are regionally located.

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Definitions:

Brakes

Mechanical devices used to inhibit motion by absorbing energy from a moving system, typically vital for the safe operation of vehicles.

Tires

Manufactured rubber products designed to cover wheels of vehicles to provide traction and absorb shock.

Tennessee Court Of Appeals

An intermediate appellate court in Tennessee that reviews decisions from lower courts.

Lease

A contractual agreement where one party, the lessor, grants the other party, the lessee, the right to use an asset for a specified period in exchange for payment.