Which of the Following Statements About Distribution Channels for Services

question 15

Multiple Choice

Which of the following statements about distribution channels for services is true?

• A)Insurance is often sold through an indirect channel of distribution.
• B)All services are sold using an indirect channel.
• C)Services create channel problems because of their need for storage.
• D)There are no intermediaries in a service channel.
• E)All services are sold using a direct channel.

---

Definitions:

Units Per Period

A measure of productivity or output over a given time frame, indicating the number of units produced or sold.

Diminishing Marginal Returns

The principle that adding more of one factor of production, while holding others constant, will eventually yield lower additional outputs.

Total Product

The overall quantity of output produced by a firm from a given quantity of inputs.

Constant Rate

A consistent, unchanging speed or pace at which something occurs or changes over time.