The Most Indirect Channel for Consumer Products Incorporates Agents, Wholesalers

question 19

Multiple Choice

The most indirect channel for consumer products incorporates agents, wholesalers, and retailers and is most commonly used when there

• A) are only a few large manufacturers but many small retailers.
• B) are low-cost, low unit volume goods.
• C) is too large an inventory to be carried by wholesalers.
• D) are many small manufacturers and many small retailers.
• E) are many manufacturers with a limited inventory competing for a small group of retailers.

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Definitions:

Subcontractors

Individuals or companies hired by a primary contractor to perform specific parts of a larger project.

General Contractor

A principal contractor who is responsible for the oversight of a construction project, managing subcontractors, and providing materials and labor for the completion of the job.

Holdback

A portion of funds or payment deliberately kept back until certain conditions are met or work is completed satisfactorily.

Fraudulent Preferences

Financial transactions made by a debtor before bankruptcy that unfairly favor one creditor over others.