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 Form 3 business studies revision questions and answers set 4

Explain four factors that may influence the choice of distribution channel.

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Answer Text:
-Nature of the product
-Nature of the market. If it is spread over a wide area or concentrated in one place
-Availability of the intermediaries
-Government policy. A firm must consider the
government regulation regarding distribution
-Scale of production. If one is producing on large scale he have to use middle men otherwise sell directly