Indirect distribution typically requires less capital than direct distribution because:
A) agent wholesalers may take on much of the selling effort and not expect any compensation until the revenue is in on what they've sold.
B) intermediaries may provide the capital required for logistics facilities.
C) merchant wholesalers and retailers usually pay for products when they purchase them and then take over the costs of carrying inventory.
D) all of the above.
E) none of the above--indirect distribution usually requires more capital.

Question

Quizplus · Accepted Answer

All of the above options are correct. Agents and intermediaries often take on some of the financial burden and risk in the distribution process, and merchant wholesalers and retailers typically pay for products upfront and carry the inventory costs themselves, which reduces the capital required by the manufacturer or supplier.

Indirect Distribution Typically Requires Less Capital Than Direct Distribution Because