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Question : Which of the following statement is correct?
Statement 1: Manufacturers goodwill does not affect the selection of channel of distribution.
Statement 2: A company which has a strong financial base can evolve its own channels.

Option 1: Both are true 

Option 2: Both are false

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 1 is false and statement 2 is true.

 


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: Statement 1 is false and statement 2 is true.

 


Solution : Manufacturers Goodwill affects the selection of channel distribution. Manufacturer enjoying good reputation need not depend on the middleman as he can open his own branches easily. A company which has strong financial base can evolve its own channels on the other hand financially weak companies would have to depend upon middleman.

Hence, option D is correct.

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