Regarding Wholesaling, Which of the Following Is(are) True

question 127

Multiple Choice

Regarding wholesaling, which of the following is(are) true?

• A) Merchant wholesalers have higher sales than agent wholesalers, but their costs (as a percent of sales) are over three times as high.
• B) There are many more manufacturers' sales branches than merchant wholesalers.
• C) Manufacturers' sales branches have higher costs than agent wholesalers and account for a smaller percentage of total sales.
• D) Good marketing managers select the type of wholesaler with the lowest cost when planning channels of distribution.
• E) All of these alternatives about wholesaling are true.

---

Definitions:

Operating Activities

Refers to the primary day-to-day activities of a business related to its production, sale, and delivery of goods and services, impacting the cash flow from operations.

Indirect Method

A method of reporting cash flows from operating activities by starting with net income and adjusting it for items that affected reported net income but did not affect cash.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Income Taxes

Taxes imposed by the government on the income of individuals or corporations, calculated as a percentage of taxable income.