The Difference Between a Supply Chain and a Channel of Distribution

question 90

Multiple Choice

The difference between a supply chain and a channel of distribution is that ________.

• A)not all members of the channel of distribution sell the same product
• B)all channel members use the same pricing methods
• C)supply chains include companies that supply materials for production plus transport to final consumer
• D)not all members of the channel of distribution are in the supply chain
• E)supply chain members all use the same promotion methods

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Definitions:

Absolute Advantage

The ability of a country or entity to produce a good or service more efficiently than its competitors, leading to greater output with the same input of resources.

Comparative Advantage

The ability of an entity to produce a good at a lower opportunity cost than another, leading to potential trade benefits.

Loads

Charges or fees that investors pay when buying or selling mutual funds, often used to compensate sales intermediaries.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.