Question : Which of the following statement is correct?
Statement 1: If the number of buyers is large then it is better to take the services of middleman for the distribution of the goods.
Statement 2: Buyers can be of two types general buyers and industrial buyers.
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.
Correct Answer: Both are true
Solution : Number of buyers and types of buyers are the market related factors affecting the choice of channels of distribution. If the number of buyer is large then it is better to make take the services of middleman for the distribution of goods. On the contrary the distribution should be done by the manufacturer directly if the number of buyers is less. Buyers can be of two types general buyers and industrial buyers.
Hence, option A is correct.
