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CSEET · Business Communication · Common Business Terminologies

Anand Traders buys goods from a manufacturer at a price that is the list price less 20% trade discount, then sells at the full list price. Which term BEST describes the practice of a manufacturer selling through such intermediaries rather than directly to consumers?

The practice is described as a channel of distribution, meaning the path through intermediaries such as wholesalers and retailers by which goods travel from the manufacturer to the final consumer. The other terms concern market share, brand payments or payment terms.

  1. AChannel of distributionCorrect
  2. BFranchise royalty
  3. CMarket penetration
  4. DCash on delivery

Explanation

The route through which goods move from producer to consumer via wholesalers and retailers is the channel of distribution. Market penetration refers to increasing share of a market, royalty is a payment for using a brand, and cash on delivery is a payment term, so none describes the route.

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