Which of the Following Is a 'Red Flag' Suggesting That

question 8

Multiple Choice

Which of the following is a 'red flag' suggesting that a company may be in trouble?

• A)A reduction in inventories
• B)An increase in dividend payout
• C)A decline in days in inventory
• D)Cash flow from operations lower than profit

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Definitions:

Disintermediation

The process of removing intermediaries or middlemen from a supply chain, typically to allow producers to sell directly to consumers.

Channel Conflict

A situation in which there is discord or disagreement among marketing channel members, such as manufacturers, wholesalers, and retailers, usually over goals, roles, or rewards.

Channel Member

An entity (e.g., manufacturer, distributor, retailer) that plays a role in the distribution and sale of goods and services in the supply chain.

Sells Directly

The practice of selling products or services directly to the customer, bypassing any intermediaries or third-party retailers.