Retailers are those firms in a marketing channel that sell directly to consumers as their primary function
Indicate whether the statement is true or false
a. True
b. False
ANSWER: True
Retailers are those firms in a marketing channel that sell directly to consumers as their primary function. They provide contact efficiency for consumers.
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A(n) ________ is established when one party licenses another party to use the first party's trade name, trademarks, commercial symbols, patents, copyrights, and other property in the distribution and selling of goods and services
A) proprietorship B) franchise C) implicit contract D) general partnership
The universal functions of marketing include buying, selling, transporting, storing, standardization and grading, financing, risk taking, and
A. facilitating. B. weighing. C. market information. D. merchandise information.
J.B. Enterprises purchased a new molding machine for $85,000. The company paid $8,000 for
shipping and another $7,000 to get the machine integrated with the company's existing assets. J.B. must maintain a supply of special lubricating oil just in case the machine breaks down. The company purchased a supply of oil for $4,000. The machine is to be depreciated on a straight-line basis over its expected useful life of 8 years. Which of the following statements concerning the change in working capital is MOST accurate? A) The $4,000 may be expensed each year over the life of the project as part of the incremental free cash flows. B) The $4,000 is added to the initial outlay and recaptured during the terminal year, hence having no impact on the projects NPV or IRR. C) Even if the $4,000 is fully recovered at the end of the project, the project's NPV and IRR will be lower if the change in working capital is included in the analysis. D) The $4,000 paid for oil is added to the initial outlay, offset by the tax savings $1600.
Two of the decentralized divisions of Gamberi Electronics Corporation are the Plastics Division and the Components Division. The Plastics Division sells molded parts to both the Components Division and to customers outside the corporation.Assume that the Plastics Division is currently operating with idle capacity. Also assume that the Components Division wants to purchase from Plastics all of the additional parts that could be made with this idle capacity. In order to increase its current level of profitability, the Plastics Division should accept any transfer price on these additional parts that is above the:
A. variable cost of the additional parts plus the lost contribution margin on all units that could no longer be sold to customers outside the corporation. B. variable cost of the additional parts. C. full (absorption) cost of the additional parts. D. full (absorption) cost of the additional parts plus the lost contribution margin on all units that could no longer be sold to customers outside the corporation.