8. Student Betty says that physical distribution includes both transportation and storage. Student Bob says
that exchange includes both buying and selling. Which student is correct?
A. Bob only
B. Neither
C. Both
D. Betty only
To determine which student is correct, we need to understand the concepts of physical distribution and exchange.
Physical distribution refers to the activities involved in getting products from the manufacturer to the final customer. It includes various processes such as transportation, storage, warehousing, and inventory management.
Exchange, on the other hand, refers to the act of giving something in return for something else. In the context of business, exchange typically involves buying and selling goods or services.
Student Betty claims that physical distribution includes both transportation and storage. This statement is correct because transportation and storage are key components of physical distribution. They are essential for moving products from one location to another and ensuring they are stored properly before reaching the customers.
Student Bob claims that exchange includes both buying and selling. This statement is also correct because exchange encompasses both activities. When goods or services are exchanged in a business transaction, one party typically buys the product while the other party sells it.
Therefore, the correct answer is option C: Both Betty and Bob are correct. Both students accurately described the components of physical distribution and exchange, respectively.