Distribution Is Considered Illegal If

question 25

Multiple Choice

distribution is considered illegal if

• A) both channels are corporately owned.
• B) one channel is a direct channel and the other is not.
• C) channels are operated from two different states.
• D) there is an attempt by a manufacturer to lessen competition by eliminating wholesalers or retailers.
• E) the prices charged consumers differ as a result of the channel in which they were making their purchases.

---

Definitions:

Certainty Equivalent Approach

A method used in capital budgeting and investment theory that adjusts future cash flows to account for risk, making them equivalent in value to cash flows received with certainty.

Risk-Free Rate

The return on an investment with no risk of financial loss, typically represented by government bonds.

Branch Decision Tree Analysis

A systematic, graphical approach to evaluating all possible alternatives in decision-making, representing outcomes, resources, costs, and utility.

Cost of Capital

A rephrasing: The minimum return that a company must earn on existing asset base to satisfy its creditors, owners, and other providers of capital.