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Which of the following statements is true of a distribution channel?

a. It is almost synonymous with demand chains.
b. It traditionally encompasses outbound logistics.
c. It handles the entire process of value creation.
d. It inhibits any contribution to the world's GDP.

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Answer:

The answer is: A) It is almost synonymous with demand chains.

Step-by-step explanation:

A company´s distribution channel is the chain of businesses through which a good passes until it reaches its final customer.

An extremely simple example would be: Factory - Wholesale distributor - Local retail store - Customer

A demand chain is just the distribution channel but seen through the eye of the customer. It answers the following question: The good that I just bought passed through which businesses in order for me to get it?

The demand chain for the previous example would be: Customer - Local retail store - Wholesale distributor - Factory

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