A Disadvantage of Direct-To-Customer Channels Is That They

question 89

Multiple Choice

A disadvantage of direct-to-customer channels is that they

• A) are not suitable when the number of transactions is small or when orders are large.
• B) are illegal in business and organizational markets.
• C) make it more difficult to serve buyers who want to lease rather than buy products.
• D) require the producer to coordinate with many retailers.
• E) None of these is a disadvantage of direct-to-customer channels.

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Definitions:

Straight-Line

A method of calculating depreciation or amortization by evenly allocating the cost of an asset over its useful life.

Salvage Value

The projected residual worth of an asset after it has served its intended period.

Plant Assets

Long-term tangible assets used in the operation of a business that are not intended for resale, such as machinery, buildings, and land.

Year Ended

Refers to the end of a fiscal year, when a company completes its annual accounting period.