CBSE Class 12 Business Studies 2015 Outside Delhi set 1

© examsnet.com
Question : 10
Total: 39
How do the 'Company-related factors' affect the choice of channels of distribution? Explain.
Solution:  
Company related factors affect the choice of distribution channels in the following manner:
(i) Financial strength: A financially strong company may conveniently opt for direct channel of distribution, whereas financially weak company has to depend on longer or indirect channel of distribution.
(ii) Degree of control: When a firm wants to exercise control over distribution then direct channel is preferred and when a firm is not desirous to control over distribution then it may opt for indirect channel of distribution.
© examsnet.com
Go to Question: