Answer:
B) number aptitude
Explanation:
Number aptitude or numerical aptitude refers to someone's capacity to quickly and accurately perform math calculations. Numerical aptitude is a cognitive ability that an individual may have a strong preference for or the capacity to perform. Usually people with strong numerical aptitude tend to work in engineering, finance, sales, computer science, scientific fields and accounting.
Lorna Perry, working in a financial firm and dealing with a large amount of numerical data, is most likely using her number aptitude. This dimension of intellectual ability involves the effective computation of numbers and the accurate and swift processing of numerical data. While other intellectual capacities might be employed, number aptitude is paramount in her role.
Explanation:In the context of Lorna Perry's work at a financial firm in Michigan, where she regularly calculates clients' accounts and needs to check the accuracy of large amounts of numerical data swiftly, she is most likely utilizing her number aptitude. This dimension of intellectual ability relates to the effective computation of numbers and the speedy, precise processing of numerical information. It is a vital skill in many business and financial roles, where arithmetic calculations and numerical accuracy are important. Visual perception, extent flexibility, deductive reasoning, and perpetual speed might also be involved in her tasks, however, when she primarily has to compute and verify figures, number aptitude is the most significant intellectual ability she likely uses.
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Seen as a disadvantage or risk with sales promotions, sales promotions are typically short-termed tactics designed to reduce inventories, increase cash flow, or show periodic boosts in market share. In other words, these promotions are known as ________________.
Answer:
Borrowing from future sales
Explanation:
Borrowing from future sales is the term which is defined as that which is the person or an individual is putting at stake over something which has not yet realized or happened.
So, the sales promotions in other words, also known as the borrowing from the future sales, in which the person risk the things in order to get profit in future.
Which of the following is not true of depreciation accounting?
A. It retains funds by reducing income taxes and dividends.
B. Depreciation allocates replacement values as part of the matching of revenues and expenses.
C. It is not a matter of valuation. It is part of the matching of historical costs to revenues and expenses.
Answer:
B. Depreciation allocates replacement values as part of the matching of revenues and expenses.
Explanation:
Depreciation allocates replacement values as part of the matching of revenues and expenses is not entirely true about depreciation accounting.
The money multiplier process also works in reverse when a loan is repaid and the amount of money that is destroyed is equal to the loan repayment times the money multiplier.A. TrueB. False
Answer:
The correct answer is TRUE
A client is visiting the prenatal clinic for the first time. While giving the nursing history the client states that her last menstrual period started on June 10. What is her expected date of birth (EDB), according to Nägele's rule?
Answer:
Expected date of birth will be 17 march
Explanation:
We have given last menstrual period started on June 10
We have to find the expected date of birth
According to Nägele's rule expected birth will be subtracting 3 month from last menstrual period and add 7 days
So after subtracting 3 month from last menstrual period it will be 10 march
And after adding 7 days it will become 17 march
So expected date of birth will be 17 march
Which fema mitigation program assists in implementing long-term hazard mitigation measures following presidential disaster declarations?
a. hazard mitigation grant.
b. severe repetitive loss.
c. repetitive flood claims.
d. pre-disaster mitigation
Answer:
correct option is hazard mitigation grant
Explanation:
solution
Hazard Mitigation projects was funded by FEMA Hazard Mitigation Assistance grant programs
and ( HMGP ) Hazard Mitigation Grant Program was created in 1988
and FEMA administer provide three program
Hazard Mitigation Grant Program Flood Mitigation Assistance Program and the Pre Disaster MitigationHazard Mitigation Grant Program assist in implement long term hazard mitigation planning and projects which follow Presidential major disaster declaration
so correct option is hazard mitigation grant
Wally and Sally want to go into business together and plan on offering a tutoring service to high school and college students. Wally proposes that they share control of the business and split profits equally and not bother with a written agreement. Sally, however, is concerned about being able to pay their debts because they will have to rent tutoring space and purchase computers and supplies. She is also concerned about parents and students who may sue if the students' test scores do not improve. She tells Wally that she just bought a new boat and car, and that she does not want her assets to be in jeopardy. She tells Wally that they should form a corporation to shield their personal assets. Wally, however, says their personal assets are not in danger with his proposal because they are a business and that, furthermore, forming a corporation would likely result in double taxation. Is Wally correct that forming a corporation would likely result in double taxation?
(A) Yes, because the corporation would be required to pay tax on its profits, and the shareholders would also be required to pay taxes on dividends.
(B) No, Wally is incorrect because all businesses are taxed in the same manner.
(C) No, Wally is incorrect but only because the law involving taxation of corporations does not apply until there are at least 10 shareholders.
(D No, Wally is incorrect but only because the law involving taxation of corporations does not apply until there are at least 75 shareholders.
(E) Yes, Wally is correct but only because his proposal does not involve a writing and the filing of paperwork with the secretary of their state.
Final answer:
Wally is correct that forming a corporation would likely result in double taxation, as the profits are taxed at the corporate level and dividends at the shareholder level. The correct answer is option A.
Explanation:
Wally's concern about double taxation is valid because with the formation of a traditional corporation, the business is taxed on its profits, and then the shareholders are also taxed on any dividends they receive from those profits. This means that the income generated by the corporation is taxed at the corporate level, and then again at the individual level when dividends are distributed, leading to double taxation.
However, not all businesses are taxed in the same way. Sole proprietors and partnerships do not face double taxation because the profits pass directly to the owners and are only taxed once at their personal income tax rates. But corporations, due to their structure as a separate legal entity from their owners, go through this process of double taxation unless they elect a special tax status, like an S corporation, which can avoid this with certain qualifications.
Thus, the correct answer to whether Wally is correct that forming a corporation would likely result in double taxation is (A) Yes, because the corporation would be required to pay tax on its profits, and the shareholders would also be required to pay taxes on dividends.
What are the reasons for having internal controls that facilitate ethical behavior?
Answer:
Mostly Preventive Controls and feedback Controls
Explanation:
For this case is important to conduct preventive and feedback controls.
The definition of preventive control is "Controls that are used to keep a loss or an error from occurring". And is improtant to do these controls continuosly in order to ensure that the ethical behavior is accomplished by all the people analyzed.
The definition of feed back controls is "a process that owners and manager uses to evaluate if their teams meet the stated goals at the end of a production process"
And for this case these two controls are so important when we want to facilitate check ethical behavior since the conduct is something that needs to be measured in all the time in order to ensure the condition for any employee.
Under autarky a country produces three goods: oranges, books, and calculators. The price of oranges is $1. If the wage is equal to $6 and each worker spends 1/3 of her income on each of the three goods, what is the consumption of oranges per person?
Answer:
The consumption of oranges per person is two.
Explanation:
Given data:
Price of oranges = 1$
Wage of worker = 6$
Consumption of oranges per person = ?
Solution:
As given each worker spends 1/3 of income on each of three goods that means
1/3 of income will be spend on oranges
1/3 of income = 1/3 x 6
1/3 of income = 2$
That means 2$ will be spent on oranges
As one orange has price of 1$ so with 2$, we can buy two oranges.
Alpha First Company just began business and made the following four inventory purchases in June:June 1 150 units $780June 10 200 units 1,170June 15 200 units 1,260June 28 150 units 990$4,200A physical count of merchandise inventory on June 30 reveals that there are 210 units on hand. Using the LIFO inventory method, the value of the ending inventory on June 30 is_________
Answer:
value of ending inventory = $1131
Explanation:
given data
June 1 150 units $780
June 10 200 units 1,170
June 15 200 units 1,260
June 28 150 units 990
$4,200
to find out
he value of the ending inventory
solution
first we get here at 1st june cost per unit will be
cost per unit = [tex]\frac{total\ cost\ inventory }{no\ of\ unit}[/tex] .............1
cost per unit = [tex]\frac{780}{150}[/tex]
cost per unit = $5.2 per unit
and
on 10th june cost per unit will be
cost per unit = [tex]\frac{total\ cost\ inventory }{no\ of\ unit}[/tex] .............1
cost per unit = [tex]\frac{1170}{200}[/tex]
cost per unit = $5.85 per unit
and
at 30th june value of ending inventory that is
value of ending inventory = ( 150 × $5.2 ) + ( 210 - 150 ) × $5.85
value of ending inventory = $780 + $351
value of ending inventory = $1131
Final answer:
Using the LIFO inventory method, the value of the ending inventory for Alpha First Company on June 30 is calculated based on the latest purchases, resulting in a total of $1,368.
Explanation:
The question pertains to determining the value of the ending inventory on June 30 using the LIFO inventory method. In the LIFO method, the last items purchased are the first ones to be used in calculating the cost of goods sold. Given the purchases made by Alpha First Company in June and a physical count indicating 210 units on hand, we start with the last purchase on June 28 (150 units at $990) and work our way backwards until we account for all 210 units in the ending inventory. The calculations will use the costs from the latest purchases first, and then proceed to earlier ones for the remaining units.
To calculate the value of the ending inventory using LIFO:
June 28 purchase: 150 units at $990June 15 purchase: We need 60 more units to make up the 210 units on hand. From this purchase, 60 units at ($1,260 / 200 units) * 60 = $378The value of ending inventory = $990 (from June 28) + $378 (60 units from June 15) = $1,368.New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems with the property. Previously, they were expected only to answer buyers' questions. The new regulation addressed the marketing ethical problem of
A. deceptive pricing tactics.
B. misleading advertising.
C. withholding information.
D. high-pressure sales techniques.
Answer: (C) Withholding information
Explanation:
The withholding information is one of the type of holding information in which we easily hold the various types of data or information deliberately in order to showing more power as compared to others.
According to the question, the agent of the real estate are withholding the data or information from the buyers and the various types of new regulations are addressing to the specific withholding information ethical problem in the market.
Therefore, Option (C) is correct.
The correct answer is C. withholding information.
Earlier the real estate agent could withhold information from buyer unless the buyer explicitly asked for it. But now, keeping in mind the benefit of the buyer regulations have changed against withholding information. It has become a mandate now to disclose existing problems of the property with the buyer so that they can make a well informed decision from their end.
Regulation Z of the Truth-in-Lending Law would apply to real estate loans for all except which of the following?A) Residential loanB) Commercial loanC) Personal loanD) Agricultural loan under $25,000
Regulation Z of the Truth-in-Lending Law does not apply to commercial loans, which is the correct answer to the question. It mainly concerns residential loans and provides protections for consumers in home ownership transactions. Option B is correct.
Regulation Z of the Truth-in-Lending Law applies to consumer credit transactions and homeowner loans. It primarily provides protections for residential loans, ensuring that borrowers are fully informed about the terms of credit before signing. The answer to the student's question is Commercial loan.
Regulation Z is not applicable to most commercial loans as they are usually for business purposes, nor does it typically apply to loans for agricultural purposes if the amount is under $25,000. Additionally, Regulation Z has important implications for ensuring fair lending practices, considering socioeconomic status, racial-ethnic identity, and other aspects. This aligns with how the Law intends to promote transparency and fairness in lending, particularly in the credit (loan) market.
New ________________ can improve economic activity provided that production costs are reduced and the economy can absorb those workers who become unemployed as a result of the new __________________..
Answer and Explanation:
New technology
With the advent of certain technology, it is true that there has been reduction in production cost and an increase in output. However, these new technology has put many employees to home as well.
Amanda Green sold her property to Sally Fay. Amanda will retain title to the property until Sally has paid in full. What kind of contract do Amanda and Sally have?
Answer: A land contract.
Explanation:
A land contract is a method of property sales where, the seller of the property, finances the sales of his property to the buyer, but keeps possession of the property until the buyer has completed payments on the property's purchase.
Land contract involves the buyer paying by installments for the property until full payment is made.
You have just purchased a home by borrowing $400,000 for 30-years at a fixed APR of 3.87%. The loan payments are monthly and interest is compounded monthly.a. What is the periodic interest rate? (I.e., what is the monthly interest rate?)b. What is the effective annual rate on the loan? (I.e., what is the interest rate once we take into account compounding?)c. What is the monthly mortgage payment?
Answer:
a. 0.3225% per month
b. 3.9393874%
c. $1,879.80
Explanation:
a. 3.87%/12
= 3.87/100
= 0.0387/12
= 0.003225 * 100
= 0.3225% per month
b. (1 + .003225)^12 - 1
= 1.039393874 - 1 = .039393874
= 3.9393874% (note how this is slightly larger than 3.87%)
c. The formula to solve this is P r/(1 - ((1/(1+r))^n)
$400,000 * .003225 / (1 - ((1/(1+.003225 ))^360) = $1,879.80
Answer:money
Explanation:
Suppose Juliana owns a small business making handbags. Each month she makes 18 handbags, which she sells for $100 each. The materials used to make each handbag cost $50. In addition, Juliana uses a spare room in her house to make the handbags and store her supplies. If she were not using the spare room for her business, she would use it as a guest room, an option that Juliana would value at $250 per month. If Juliana weren’t making handbags, she would work at Trader Joe’s earning $800 per month. What is Juliana’s economic profit each month?
Answer:
$-150
Explanation:
Sales Revenue = 18 handbags per month X $100 per handbag
= $1,800
Variable costs = 18 handbags X $50 cost per handbag
= $900
Juliana's Net Income = $1,800 - $900
= $900
Juliana's opportunity costs = $250 for renting guest room + $800 at job
= $1050
Juliana's Economic Profit = Net Income - Total Opportunity Costs
= $900 - $1,050
= -$150
Hence, her economic profit is actually a negative 150 dollars.
Final answer:
Juliana's economic profit is negative, a loss of $150 per month, after considering both explicit costs of materials ($900) and implicit costs of foregone opportunities ($1,050), which includes the use of her spare room and alternative income from a job.
Explanation:
To calculate Juliana's economic profit each month from her handbag business, we must consider both explicit and implicit costs. Explicit costs are her direct costs for materials, which are $50 per handbag. Given that she produces 18 handbags a month and sells them for $100 each, her total revenue is 18 x $100 = $1,800. The total explicit costs are 18 x $50 = $900. Therefore, her accounting profit before considering implicit costs would be $1,800 - $900 = $900.
However, economic profit also includes implicit costs, such as the opportunity costs of her time and the use of her space. Juliana values the use of her spare room as a guest room at $250 per month, and she would earn $800 per month by working at Trader Joe's. Thus, the total implicit cost is $250 + $800 = $1,050.
Subtracting the total implicit cost from her accounting profit gives us her economic profit: $900 (accounting profit) - $1,050 (total implicit cost) = $-150. Therefore, Juliana's economic profit is a loss of $150 per month.
According to Mintzberg's typology, a manager who evaluates the performance of other managers in different tasks and takes corrective action to improve their performance is a _________.
Answer:
Monitor
Explanation:
Henry Mintzberg described a manager who evaluates the performance of other managers in different tasks and takes corrective action to improve their performance as a monitor.
Manager’s job is highly orchestrated in which managers rationally calculate the best way to use resources to achieve the organizational goals. Henry Mintzberg by following the manager around and observe what they actually do hour by hour and day by day. He transformed or identified ten set of responsibilities or kinds of specific roles, that capture the dynamic nature of managerial work.He has grouped these roles as whether the responsibility is primarily, decisional, interpersonal or informational in nature.
As described under the role Informational the specific role of Monitor who evaluate the performance of manager in different tasks and take corrective actions to improve their performance; watch for changes occurring in the external and internal environments that may affect the organization in the future
Final answer:
A manager who evaluates and takes corrective actions to improve the performance of other managers in Mintzberg's typology fulfills the role of a Monitor. This role focuses on maintaining operations within established standards and enhancing organizational efficiency and team performance.
Explanation:
According to Mintzberg's typology, a manager who evaluates the performance of other managers in different tasks and takes corrective action to improve their performance is a Monitor. This role involves collecting information from various sources including the performance data of subordinates, and then using this information to make informed decisions and implement changes when necessary. This managerial role is critical in ensuring that the organization's performance standards are met and that operations run smoothly.
Furthermore, a manager who fills this role is responsible for observing operations and tracking the effectiveness of processes and people within the organization. They are involved in organizational behavior, and their actions drive both operational efficiency and team performance. Such managers are essential in maintaining the established structure of the company, sticking to plans, following rules and regulations, and executing their day-to-day tasks proficiently.
The U.S. GAAP Financial Reporting Taxonomy is an electronic dictionary of business reporting elements used to report ________.
Select one:
a. The value of assets
b. Business data
c. Sales
d. Taxes
Answer: b. Business data
Explanation:
The U.S. GAAP Financial Reporting Taxonomy contains information pertaining to the standards enlisted by the U.S. securities and exchange commission (SEC) for an individual to submit information related to filing.
Division of labor increases in __________. As the food supply grows, not everyone needs to be engaged in food production. Some people can pursue activities such as weaving cloth or carpets, crafting jewelry, or creating the tools needed for building the society’s structure.
Answer:
Horticultural and pastoral societies
Explanation:
Division of labor increases in horticultural and pastoral societies. As the food supply grows, not everyone needs to be engaged in food production. Some people can pursue activities such as weaving cloth or carpets, crafting jewelry, or creating the tools needed for building the society’s structure.
Personal selling can take place in all situations except when
Answer:
Through the newspaper ads.
Explanation:
Personal selling is one of the ways of selling of products by various businesses where the seller and the customers come in direct contact or face to face in order to discuss the features, benefits, and worthiness of any product that the seller is interested in selling This can be done through direct face to face interaction, on telephones, through video conferencing, and also on the internet but not through newspaper ads.
On April 1, 2016, the premium on a one-year insurance policy was purchased for $3,000 cash with the insurance coverage beginning on that date. The books are adjusted only at year-end. Which of the following correctly describes the effect on the financial statements of the December 31, 2016 adjusting entry?A. Prepaid insurance will decrease $750.B. Insurance expense will increase $750.C. Insurance expense will increase $2,250.D. Prepaid insurance will increase $2,250.
Answer:
C. Insurance expense will increase $2,250
Explanation:
On April 1 2016, the following journal entry will be recorded in respect of the premium paid on a one year insurance policy:
Debit Credit
Prepaid Insurance $3,000
Cash $3,000
The year end given in this question is December 31, 2016 and the insurance premium is for one year and since the insurance premium is paid on April 1, 2016, therefore, only expense in respect of 9 months i.e. from April 1, 2016 to the December 31, 2016 will be recognised in this year. Remaining expense of three months will be recognised in the Year ended December 31,2017.
The following Journal entry will be recorded in respect of insurance expense in accounts on December 31, 2016.
Debit Credit
Insurance expense(3,000*9/12) 2,250
Prepaid Insurance 2,250
So the answer will be C. Insurance expense will increase $2,250
We calculate the insurance expense for the year as the cost of the policy ($3,000) multiplied by the portion of the year that has passed (9/12), which is $2,250. The answer is C. Insurance expense will increase $2,250. The prepaid insurance, on the other hand, will decrease by $2,250, and neither A or D accurately reflect this.
Explanation:For this particular situation, we know that the total premium for the one-year insurance policy was $3,000 and that the policy started on April 1st, 2016. As the books are adjusted on December 31st, 2016, then only nine months (or three-fourths) of the policy have been used. Thus, the insurance expense for 2016 would be the cost of the policy ($3,000) multiplied by the proportion of the year that has passed (9/12), which results in $2,250. Therefore, the answer is C. Insurance expense will increase $2,250.
However, for the prepaid insurance, it will be reduced by the same amount ($2,250), not $750. So, none of the provided options accurately describe the effect on the 'Prepaid insurance' account.
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"In employees decide how motivated they are by evaluating the likelihood that their effort will produce a certain level of performance and that a certain level of performance will lead to a reward, as well as how much they value the reward being offered."
Answer:
Vroom's expectancy theory
Explanation:
Vroom's Expectancy theory states that three factors determine how motivated people will be. They are; expectancy, valence and instrumentality.
Expectancy is how employees expect they will perform or the effort they will have to put in to produce a certain level of performance.
Instrumentality relates to the belief that performance will achieve the required results and yield certain rewards.
Valence refers to how much employees value the rewards they receive.
Additional property improvments that bring no corresponding increase in income or value provide an example of
Answer:
Additional property improvement that bring no corresponding increase in income or value, the law of decreasing return is operating.
Explanation:
Improvements to land and structures eventually will reach a point at which there will have no positive effect on property values. As long as money spent on such improvements produces a proportionate or greater increase in income or value, the law of increasing returns is in effect.
At the point when additional improvement that bring no corresponding increase in income or value, the law of decreasing return is operating.
An assistant manager at a restaurant gets a $100 a month raise. He figures that with his new monthly salary he cannot buy as many goods and services as he could buy last year. a. His real salary has risen and his nominal salary has fallen. b. His real salary has fallen and his nominal salary has risen. c. His real and nominal salary have fallen. d. His real and nominal salary have risen.
Answer:
b. His real salary has fallen and his nominal salary has risen.
Explanation:
If the assistant manager's salary rose but he can't afford the goods he used to buy last year , it means that his nominal salary rose.
Nominal salary is the sum of real salary and inflation rate.
Real salary is nominal salary less inflation rate.
Real salary measures the purchasing power of salary.
If with the salary increase, the assistant manager could buy more goods compared to last year, both nominal and real salary increased.
I hope my answer helps you.
When potential capital investments of different size are compared
Answer: profitability index
Explanation: When potential capital investment of different size are compared, management should choose the one with the:
Highest profitability index.The Profitability Index (PI) measures the ratio between the present value of future cash flows and the initial investment. The index is a useful tool for ranking investment projects and showing the value created per unit of investment.
in a mass production of machining the cutting speeds are 100,200, 300 ft./minute and the corresponding production rates (P) are 8,12 and 10 parts per hour respectively. Calculate the best cutting speed and the corresponding maximum number of parts per hour
Answer:
The best production speed = 300ft/minute
18000/10 = 1800ft/part hr
Explanation:
Cut Speed A = 100ft/minute
Cut speed B = 200ft/minute
Cut speed C = 300ft/minute
Since 60 minutes = 1 hour
Machine works for one hour
Total length with cut for speed A = 60* 100 = 6000ft
Total length with cut speed B = 200 *60 = 12000ft
Total length with cut speed C = 300 * 60 = 18000ft
Number of 8 part in length A = 6000/8 = 750ft/part hr
Number of 12 parts in length B = 12000/12 = 1000ft/part hr
Number of 10 parts in length C =
18000/10 = 1800ft/part hr
The employees at LennoCorp are meeting or exceeding their goals, and consistently get positive reviews. However, competition has forced down prices on the goods LennoCorp produces, thereby reducing the firm's income. In this situation, pay levels may be limited by
A. the employer's ability to pay.
B. the employees' relative worth.
C. the employees' motivation.
D. the worth of the job.
Answer:
The answer would be A
Explanation:
The payment of salaries is directly the responsibility of the employer, so if you have a bad run and your economy is diminished, employees may be suffering the consequences to some extent.
When the double-extension approach to the dollar-value LIFO inventory method is used, the inventory layer added in the current year is multiplied by an index number.
Which of the following correctly states how components are used in the calculation of this index number?
a. In the numerator, the average of the ending inventory at base year cost and at current year cost.
b. In the numerator, the ending inventory at current year cost, and, in the denominator, the ending inventory at base year cost.
c. In the numerator, the ending inventory at base year cost, and, the denominator, the ending inventory at current year cost.
d. In the denominator, the average of the ending inventory at base year cost and at current year cost.
Answer:
(b) In the numerator, the ending inventory at current year cost, and, in the denominator, the ending inventory at base year cost.
Explanation:
(b) is the correct answer because the index number used is calculated as
Index = [tex]\frac{ending-inventory-at-current-year-cost}{ending-inventory-at-base-year-cost.}[/tex]
This index describes the relationship between current and base year price. when multiplied by a new layer i.e increase in base year dollars, it will give current year dollars.
Which of the following is an individual characteristic of employees that improves individual mechanisms such as stress and motivation?A) Organizational structureB) SkillsC) PersonalityD) MotivationE) Leadership style
Answer: C) Personality
Explanation:
Personality is an individuals quality that helps them succeed in life. If you improve your personality you can control stress and increase your motivation.
Adam Smith’s explanations of national economic living standards became known as the ___________ Theory..
Answer: Classical theory
Explanation:
The classical theory is one of the type of traditional method that explain about the national economy standard in an organization for building an accounting model by using various types o business strategies.
According to the question, the Adam smith's explaining about the national economical living standards.
The main benefits of the classical theory is that it helps in providing the high quality, efficiency, management and cost reduction in the specific organization system.
Therefore, Classical theory is the correct answer.
Sandra visits the local farmer's market every Friday during the summer, where she picks up fresh produce that was grown by the same farmers who are there to sell the goods. The farmer's market where Sandra likes to shop illustrates what type of distribution channel?
Answer:
Direct Distribution Channel
Explanation:
A direct distribution channel is the process to which a company receives its goods directly to consumers without any middlemen.
In this case, Sandra gets her produce from the farmer that produces them.
Many businesses may use systems involving middlemen to deal with the delivery of their products. A business that is directly responsible for manufacturing, shipping and distributing its goods to the consumer, however, uses a direct distribution channel.
The farmer's market where Sandra likes to shop illustrates a direct channel of distribution.
When Sandra visits the local farmer's market every Friday during the summer to pick up fresh produce grown by the same farmers who are there to sell the goods, she is engaging in a direct channel of distribution. This is because there are no intermediaries between the producer (the farmers) and the consumer (Sandra). The goods are sold directly by the producers to the end consumers, which is characteristic of a direct channel of distribution.
In contrast, an indirect channel of distribution would involve one or more intermediaries, such as wholesalers or retailers, between the producer and the consumer. Since Sandra is purchasing directly from the farmers, the scenario does not involve any intermediaries and thus represents a direct channel of distribution.