The type of distribution system that is owned by the manufacturer throughout the channel of distribution to the retail stores is a(n):Multiple choice question.corporate distribution systemwholesaler-sponsored systemretail cooperativefranchise system
Question
The type of distribution system that is owned by the manufacturer throughout the channel of distribution to the retail stores is a(n):Multiple choice question.corporate distribution systemwholesaler-sponsored systemretail cooperativefranchise system
Solution
The type of distribution system that is owned by the manufacturer throughout the channel of distribution to the retail stores is a(n): corporate distribution system.
Here's why:
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A corporate distribution system is a system where the manufacturer owns the entire distribution channel. This includes the wholesale and retail levels. This allows the manufacturer to have complete control over the distribution of their products.
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A wholesaler-sponsored system is a type of distribution system where independent retailers establish an organization that operates a wholesale facility cooperatively. It's not owned by the manufacturer.
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A retail cooperative is a type of enterprise which employs economies of scale on behalf of its retailer members. Retailers' cooperatives use their purchasing power to acquire discounts from manufacturers and often share marketing expenses. It's a retail store owned by its customers.
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A franchise system is a type of license that a party (franchisee) acquires to allow them to have access to a business's (the franchisor) proprietary knowledge, processes, and trademarks in order to allow the party to sell a product or provide a service under the business's name. It's not owned by the manufacturer.
So, the correct answer is a corporate distribution system.
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