INTRODUCTION TO ENTREPRENEURSHIP
IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A parent buying a picture frame for his/her desk
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A hairstylist buying new scissors to perform haircuts
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A family buying a new home computer
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A teacher buying a book to read on vacation
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Detailed explanation-1: -A hairstylist buying new scissors to perform haircuts. A hairstylist purchasing scissors is an example of an industrial user. S/he is purchasing the product to use in the operation of his/her business-in this case, for providing a service.
Detailed explanation-2: -Ultimate consumers are those individuals or groups who use a product after it has gone through all the stages of production. For example, a family of three would be the ultimate consumers of cereal when they purchase it from the grocery store.
Detailed explanation-3: -Offering credit to buyers is an example of a facilitating function performed by channel intermediaries.
Detailed explanation-4: -Distribution channels include wholesalers, retailers, distributors, and the Internet.
Detailed explanation-5: -With the direct channel, the company sells directly to the customer. For example, a brewery that brews its own beer and sells it to customers at its own brick-and-mortar location employs a direct channel of distribution.