Which of the following is an advantage of using an industrial distributor?
A) These firms are easy to control because they work directly for the producers.
B) Inventory holding costs are minimized because they can store inventory very cheaply.
C) They are closer geographically to all of the producers' customers.
D) They possess a high level of technical knowledge about their products.
E) They help reduce a producer's financial burdens by extending credit to customers.

Question

Quizplus · Accepted Answer

Industrial distributors often extend credit to customers, which can help reduce the financial burden on producers by allowing them to receive payment more quickly while the distributor manages the credit risk.

Which of the Following Is an Advantage of Using an Industrial