Which of the following statements is true?
A. Direct distribution approaches usually require less investment capital than indirect approaches.
B. Intermediaries that pay for products when they purchase them and pay the costs of carrying inventory help a producer's cash flow.
C. Public warehouses and transportation firms increase the capital needed for logistics facilities.
D. More capital is needed when intermediaries take on responsibility for promotion.
E. Control is higher if indirect distribution is used.
Answer: B