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In indirect channel systems, the business interfaces with customers at all contact points and retains ownership of the product until delivery?

A) True
B) False

1 Answer

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Final answer:

The statement about indirect channel systems is false, as businesses do not always interact with customers at all contact points due to the involvement of intermediaries. Moreover, the claim about proprietary colonies is false; Proprietors had several responsibilities beyond profit collection. The correct option is B.

Step-by-step explanation:

The statement 'In indirect channel systems, the business interfaces with customers at all contact points and retains ownership of the product until delivery' is False. In an indirect channel system, the business uses intermediaries to handle the product and oftentimes, these intermediaries—such as distributors, wholesalers, or retailers—take ownership of the goods once they acquire them. The business usually does not interact with the customers at all contact points because the intermediaries manage parts of the customer interface and process.

As for the statement on proprietary colonies, it is also False. In the context of a proprietary colony, such as those established in early American history, the Proprietors had various responsibilities, including but not limited to administrative duties and ensuring the colony was governed according to the laws of the overseeing nation. They were not solely focused on collecting profits and had to manage the colony's affairs effectively.

Hence, Option B is correct.

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