Channels of Distribution

question 162

Multiple Choice

Channels of distribution:

• A) that include intermediaries result in higher distribution costs than channels without intermediaries.
• B) should be designed to increase discrepancies of quantity between producers and consumers.
• C) usually do not involve conflicts as long as each channel member has profit as a goal.
• D) usually require longer-term planning than other market mix elements because channel decisions are more difficult to change quickly.
• E) are always characterized by conflict among channel members.

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Definitions:

Working Capital

The variance between a firm's current holdings and debts, reflecting its short-term economic condition and efficiency in procedures.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

Sales On Account

Transactions where revenue is recorded when sales are made, but payment is received at a later date.

Cost Of Goods Sold

The total cost of goods that have been sold during a specific period, including the cost of materials, labor, and overhead.