When a Channel Intermediary Is Compensated for the Ordinary Services

question 115

Multiple Choice

When a channel intermediary is compensated for the ordinary services and tasks performed within the channel of distribution,the compensation,usually in the form of a discount from base price,is called which of the following?

• A) a functional (or trade)discount
• B) a rebate or refund
• C) a promotional allowance
• D) a cumulative or noncumulative quantity discount

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Definitions:

Vertically Integrated

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer also controls the distribution and retail levels of their product.

Centralized

An organizational structure where decision-making authority is concentrated at the top levels of management.

Departmentalization

The process of dividing an organization into different departments or units based on functions, products, or geographical locations for efficiency.

Empowering

Giving employees the authority, resources, and opportunity to make decisions and contribute to the organization’s success..