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Which of the following is true of the distribution process?

1) It does not involve the physical handling and distribution of goods.
2) It includes activities related to the promotion of goods and services.
3) The ownership title remains with the distributor even on completion of the transaction.
4) It includes buying and selling negotiations.
5) The behavior of channel members is not affected by the cultural environment.

User MikeD
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1 Answer

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Final answer:

The distribution process does involve the physical handling of goods, includes promotion-related activities, transfers ownership upon transaction completion, involves negotiations, and is affected by cultural factors.

Step-by-step explanation:

When considering true statements about the distribution process, it's important to understand that distribution involves the physical handling and distribution of goods, contrary to the first statement. Additionally, the distribution process encompasses activities related to the promotion of goods and services, making the second statement true. The ownership title typically transfers to the buyer upon completion of the transaction, not remaining with the distributor, which refutes the third statement. Statement four is accurate as distribution definitely includes buying and selling negotiations. Finally, the behavior of channel members is indeed affected by the cultural environment, which makes the fifth statement untrue.

The concept of the value chain is integral to understanding distribution, as it describes the stages of production, including design, manufacturing, and marketing. International trade has evolved significantly with technological advances, leading to more specialized and segmented value chains, and making distribution a more complex and integral part of global business operations.

User JohnHC
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