Alarid Company purchases goods from a manufacturer who then turns around and sells them to a retailer who sells them to final customers. The Alarid Company is participating in a(n)
A. regrouping activity
B. accumulating activity
C. channel of distribution
D. bulk-breaking project
E. None of the above
Answer: (C) A channel of distribution is any series of firms or individuals who participate in the flow of goods from producer to final user; therefore, (C) is the correct choice. Regrouping activities (A) adjust the quantities and assortments of products handled. Accumulating (B) involves collecting products from many small producers. Bulk-breaking (D) involves dividing larger quantities into smaller quantities. Because (C) is the correct choice, (E) would be incorrect.