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.

 


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

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.

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