Selective Distribution

question 116

Multiple Choice

Selective distribution:

• A) is likely to reduce high administrative expenses caused by a large proportion of small orders.
• B) may be suitable for all categories of products.
• C) is becoming more popular.
• D) is a good idea if some of the available intermediaries are not financially solid.
• E) All of the above are true.

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Definitions:

Capital Balances

The amounts of money or value of other assets owned by a company or individual, often reflective of equity or investment in business.

Income Ratios

Metrics used to evaluate a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.

Bonus

Additional compensation given to employees as an incentive or reward beyond their regular salary.

Capital Balances

The amount of money that the owners of a business have invested in it, typically represented in the equity section of the balance sheet.