Capital requirements are likely to be less when intermediaries take on much of the responsibility for promotion in the channel.
Answer the following statement true (T) or false (F)
True
Indirect distribution usually requires less investment capital than direct approaches. Intermediaries who pay for products when they purchase them and pay the costs of carrying inventory help a producer's cash flow.
You might also like to view...
Franklin Corporation invested $100,000 to acquire 20,000 shares of Hope Technologies, Inc. on March 1, 2018. Hope pays a cash dividend of $0.25 per share on July 2, 2019. The investment is classified as equity securities with no significant influence. Based on these two transactions, which of the following is TRUE of the accounting equation as of July 2, 2019?
A) Total assets in the balance sheet will remain unchanged. B) Current assets in the balance sheet will remain unchanged. C) Equity in the balance sheet will increase. D) Total liabilities in the balance sheet will increase.
A memo makes more of an of?cial statement than an e-mail message
Indicate whether this statement is true or false.
Sales at East Corporation declined from $100,000 to $80,000, while net operating income declined by 300%. Given these data, the company must have had an operating leverage of:
A. 30 B. 12 C. 15 D. 2.7
Which of the following statements regarding the return on equity (ROE) measure is incorrect?
A. ROE is used to measure the profitability of the firm in relation to the amount invested by stockholders. B. ROE is affected by a company's use of leverage. C. ROE equals net income divided by average total stockholders' equity. D. A company's ROE is lower than its return on investment because ROE does not consider that part of the business that is financed by debt.