Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

"ABC Ltd. sells products through company-approved retailers." Identify the type of channel of distribution in this case.

Options:

Zero level Channel

One level Channel

Two level Channel

Three level Channel

Correct Answer:

One level Channel

Explanation:

The correct answer is option 2- One level Channel.

In a one level channel, the manufacturer (ABC Ltd.) sells products to retailers, who then sell them to customers. Since ABC Ltd. uses company-approved retailers, there is one intermediary (the retailer) between the company and the customer — hence, it is a one level distribution channel.