What Is a Primary Difference Between an Industrial Distributor and a Manufacturers

question 124

Multiple Choice

What is a primary difference between an industrial distributor and a manufacturers' agent?

• A) A manufacturers' agent does not acquire title nor usually take possession of the products whereas an industrial distributor does.
• B) A manufacturers' agent is employed by the manufacturers while an industrial distributor is independent.
• C) An industrial distributor is employed by the manufacturers while a manufacturers' agent is independent.
• D) A manufacturers' agent rarely adds any value to the marketing channel while an industrial distributor reduces costs significantly.
• E) An industrial distributor does not form relationships with customers for repeat business whereas a key asset of a manufacturers' agent is his knowledge of his customers.

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Definitions:

Purchase Money

Funds used specifically for buying an asset, often in the context of money borrowed to purchase real estate.

Security Interest

A legal right granted by a debtor to a creditor over the debtor's property to secure the repayment of a debt.

Consumer Goods

Products that are purchased for personal or household use, rather than for manufacturing or reselling.

Priority Rule

A principle that establishes the order in which claims or legal rights are to be enforced or satisfied.