Goshen HS Business Foundations Practice Test 2026 – Complete Exam Prep

Distribution describes the movement of goods from producer to consumer through channels. It covers how products travel from manufacturing to markets, including the intermediaries involved (such as wholesalers and retailers) and the activities that get items to buyers—transportation, storage, inventory management, and selling. This focus on the path a product takes through a network of channels is what sets distribution apart from the other terms: demand is about how much people want a product, not how it gets to them; the economy refers to the overall system of production and consumption; and cost of goods sold is an accounting measure of the expenses tied to making the goods that are sold. For example, jeans moving from a factory to a regional distributor, then to a local store, and finally to a customer illustrates distribution in action.