Distribution Channels Create Efficiencies by Reducing the Number of Transactions

question 47

Multiple Choice

Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from different manufacturers to large numbers of customers.One of the ways this occurs is through ________.

• A)relationship management
• B)creating assortments
• C)cost-based pricing
• D)the creation of atmospherics
• E)the absence of economies of scale

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Definitions:

Future Value

The projected value of an investment at a future point in time, factoring in specifics like interest rates and compounding periods.

Quarterly

Pertaining to or occurring every quarter, a three-month period, often used in financial and business reporting.

Annuities

Financial products that provide a series of payments over time, often used for retirement savings or income.

Compounded Annually

The process of adding the accumulated interest back to the principal sum at the end of each year, so that interest is earned on interest from that point forward.