Multiple Choice
Which of the following statements is TRUE regarding charitable contributions to nonprofit organizations?
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1. Introduction to Accounting
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Which of the following best describes channels of distribution that involve the use of intermediaries?
A
Exclusive channels
B
Dual distribution channels
C
Direct channels
D
Indirect channels
Verified step by step guidance1
Understand the concept of channels of distribution: Channels of distribution refer to the paths or routes through which goods and services flow from the producer to the consumer. These can involve intermediaries or be direct.
Define intermediaries: Intermediaries are entities such as wholesalers, retailers, or agents that help facilitate the movement of goods from producers to consumers. They play a role in indirect channels of distribution.
Differentiate between direct and indirect channels: Direct channels involve no intermediaries, where producers sell directly to consumers. Indirect channels, on the other hand, involve intermediaries that help distribute the goods.
Analyze the options provided: Exclusive channels refer to limiting distribution to a few outlets, dual distribution channels involve using multiple methods simultaneously, and direct channels bypass intermediaries. Indirect channels specifically involve intermediaries.
Conclude that the correct answer is 'Indirect channels' because they best describe distribution channels that involve the use of intermediaries.
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