A Channel System in Which the Various Members Informally Agree

question 73

Multiple Choice

A channel system in which the various members informally agree to cooperate with each other is called a(an) ______________ system.

• A) contractual channel
• B) dual distribution
• C) traditional channel
• D) administered channel
• E) franchising

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Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of investments.

Discount Factor(s)

A multiplicative factor used to calculate the present value of future cash flows by accounting for the time value of money.

Discount Rate

The interest rate used in discounted cash flow analysis to calculate the present value of future cash flows.

Net Present Value

The variance between cash inflows' and outflows' current values during a certain period.