Indirect Distribution Typically Requires Less Capital Than Direct Distribution Because

question 169

Multiple Choice

Indirect distribution typically requires less capital than direct distribution because:

• A) agent wholesalers may take on much of the selling effort and not expect any compensation until the revenue is in on what they've sold.
• B) intermediaries may provide the capital required for logistics facilities.
• C) merchant wholesalers and retailers usually pay for products when they purchase them and then take over the costs of carrying inventory.
• D) all of the above.
• E) none of the above--indirect distribution usually requires more capital.

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Definitions:

Positive Correlation

A relationship between two variables where they move in the same direction, indicating that as one variable increases, so does the other.

Criterion-related Validity

The extent to which a test successfully measures an operational variable and can predict a criterion or outcome.

Validity

The extent to which a test, measurement, or research accurately reflects or assesses the specific concept it is intended to measure.

Job Performance

The degree to which an employee successfully fulfills the roles, responsibilities, and tasks of their job position.