Which Is a Major Limitation of Exclusive Distribution

question 2

Multiple Choice

Which is a major limitation of exclusive distribution?

• A)poor relations among channel members
• B)limited sales potential
• C)high price competition
• D)low levels of customer service

---

Definitions:

Return on Investment

A metric for assessing the effectiveness or gains of an investment, determined by dividing the net earnings by the investment's expense.

Minimum Return on Investment

The least amount of profit expected from an investment, below which an investment is not considered acceptable.

Investment Turnover

A measure of a company's ability to generate sales from its investment in assets, typically used to assess the efficiency of investment usage.

Profit Margin

A ratio of profitability calculated as net income divided by revenue, showing the percentage of each dollar of revenue that results in net income.