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.

Learn the significance of check endorsements and the appropriate practices for handling received checks.

Understand the components that make a check valid and the legal implications of accepting checks marked "paid in full".

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Know the security implications of accepting postal money orders and third-party checks.

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