Free IIA-CIA-PART3-3P Exam Braindumps
Certified Internal Auditor - Part 3, Business Analysis and Information Technology Questions 361–365 (page: 74)

Updated On: 10-Feb-2026

The channel structure in which producers, wholesalers, and retailers act as a unified system is a:

  1. Horizontal distribution system.
  2. Vertical distribution system.
  3. Unilateral distribution system.
  4. Multichannel system.

Answer(s): B

Explanation:

In vertical distribution systems, producers, wholesalers, and retailers act as a unified system. Channel conflict is managed through common ownership, contractual relationships, or administration by one or a few dominant channel members. Horizontal distribution systems consist of two or more companies at one level of the channel working together to exploit new opportunities, such as the introduction of ATMs in supermarkets. The joint nature of horizontal distribution efforts is the tool for managing channel conflict. In a multichannel system, a single firm sets up two or more channels to reach one or more customer segments.
Because such a system is managed by a single firm, channel conflicts can be evaluated and managed internally.



Which of the following channel structures have the best means of managing channel conflict?

I). Conventional
II). Vertical
III). Horizontal
IV). Multichannel

  1. I and II.
  2. II, III, and IV.
  3. I, III, and IV.
  4. II and III.

Answer(s): B

Explanation:

In vertical distribution systems, channel conflict is managed through common ownership, contractual relationships, or administration by one or a few dominant channel members. The joint nature of horizontal distribution efforts is the tool for managing channel conflict. In a multichannel system, because such a system is managed by a single entity, channel conflicts can be evaluated and managed internally. Conventional distribution systems consist of one or more independent producers, wholesalers, and retailers, each of which is a separate profit maximizing business. The profit objective of each independent channel member may result in actions that are not profit- maximizing for the system as a whole, and the conventional distribution system offers no means for controlling channel conflict.



The airlines have been leaders in the use of technology. Customers can make reservations either with an airline or through a travel agency. In this situation, a travel agency is classified as which type of distribution channel?

  1. An intermediary.
  2. A jobber.
  3. A distributor.
  4. A facilitating agent.

Answer(s): A

Explanation:

Marketing intermediaries assist companies in promoting, selling, and distributing their goods and services to ultimate consumers. For example, travel agents access an airline's computerized reservation system and make reservations for their customers without ever taking title to the ticket.



Physical distribution is the moving of finished products to:

  1. Retail outlets.
  2. Shipping point.
  3. Consumers.
  4. Warehouses.

Answer(s): C

Explanation:

Physical distribution is the efficient management of supply chains. It controls value- added flows from suppliers to consumers.



Intensive distribution is most likely to be used for:

  1. Shopping goods.
  2. Specialty goods.
  3. Convenience goods.
  4. Unsought goods.

Answer(s): C

Explanation:

Convenience goods are consumer goods and services that are usually low-priced and I widely available. Consumers buy them often and with a minimum of comparison and effort.
Examples are soap and newspapers. Producers of convenience goods ordinarily use intensive distribution to sell their products through a large number of retail or wholesale units.



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