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 these.
E) None of these-indirect distribution usually requires more capital.

Question

Quizplus · Accepted Answer

All of these options contribute to the fact that indirect distribution typically requires less capital than direct distribution. Agent wholesalers may take on the selling effort without immediate compensation, intermediaries may provide logistical facilities, and merchant wholesalers and retailers usually pay for products and inventory costs.

Indirect Distribution Typically Requires Less Capital Than Direct Distribution Because