Entrepreneurship and Small Business (ESB) Certification Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Entrepreneurship and Small Business Certification Exam with engaging quizzes. Use flashcards and multiple choice questions, each with detailed hints and explanations. Enhance your entrepreneurial skills and ace your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What are two reasons a meal delivery company would prefer direct distribution channels?

To increase brand recognition and reduce customer acquisition costs
To lower shipping costs and quickly deliver products
To access a larger customer base and enhance product visibility
To reduce packaging expenses and improve product quality

The correct answer is: To lower shipping costs and quickly deliver products

A meal delivery company would prefer direct distribution channels primarily to lower shipping costs and quickly deliver products. Direct distribution allows the company to manage its logistics more efficiently by eliminating intermediaries, which can lead to reduced costs associated with shipping. This is especially important for perishable goods, as minimizing transit time helps maintain the quality of the meals while also lowering expenses associated with handling and distribution. Fast delivery times are crucial in the meal delivery industry, as consumers expect fresh meals delivered quickly. By controlling the entire process, from preparation to delivery, the company can streamline operations, respond swiftly to customer orders, and enhance service speed. This direct control over logistics not only improves customer satisfaction through timely deliveries but also helps in maintaining the freshness and quality of the meals, an essential aspect of customer experience in this industry.