A Channel of Distribution That Purchases Products from a Company

question 21

Multiple Choice

A channel of distribution that purchases products from a company doing business in a foreign market and then resells them to other buyers is called a(n) _____.

• A) freight back-warder
• B) freight forwarder
• C) agent
• D) public channel
• E) distributor

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Definitions:

Arbitrage Profit

Profit earned from buying and selling the same asset in different markets to take advantage of differing prices for the same asset.

Stock Index

A measurement of a section of the stock market calculated from the prices of selected stocks, representing a specific market or sector.

Futures Contracts

Financial contracts obligating the buyer to purchase an asset or the seller to sell an asset, such as a physical commodity or a financial instrument, at a predetermined future date and price.

Electronic Networks

Systems or platforms that facilitate the trading of financial instruments, such as stocks and currencies, digitally and without a physical trading floor.