In the months immediately following a sale, Distribution Corporation receives 45% of the proceeds, followed by 20% in the second month. Sales of $183,000 are planned for the following four months.
Getting products to consumers is what is meant by distribution. Shipping rice from Asia to the United States is an illustration of distribution. Channels of Distribution's Function in Business Any company's goal is to establish a conduit or channel for distribution so that their good or service can reach consumers and be sold. Intermediaries, such wholesalers, retailers, or brokers, serve as the link between producers and the final consumer. A corporation carries on business, generates a profit or loss, pays taxes, and distributes profits to shareholders and corporation. When a business makes money, it is taxed; but, when it distributes dividends to its shareholders, it is taxed to the shareholders and corporation.
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