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:

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through the process of diversification, as it's not correlated to market risk.

Employees

Individuals who are hired by a company or organization to perform work in exchange for compensation.

Systematic Risk

The potential for loss inherent in the entire market or an entire market segment, also known as market risk or non-diversifiable risk.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk level compared to the market average.