Businesses, individuals, and governments often need to raise capital, while others have surplus funds. In a well-functioning eco
nomy, capital flows efficiently from those with surplus capital to those who need it. Transfers can take place in 3 ways (indirect, direct) transfers without going through any type of financial institution, (indirect, direct) transfers through investment banks that underwrite the securities, and indirect transfers through financial (agencies, intermediaries, funds) that create new forms of capital.
1). Direct Channel: This is explained to be the shortest and simplest channel of direct distribution of goods from manufacturer to customers.
It is called as zero level channel of distribution as it does not involve any intermediary.
2. Indirect Channel: When a manufacturer employs one or more intermediaries to sell and distribute their product to the customers it is called as indirect selling. In this, goods move from the point of production to the point of consumption through a distribution network.
3). Intermediaries: This is a firm or person(such as a broker or consultant) who acts as a mediator on a link between parties to a business deal, investment decision, negotiation etc.
From The given scenario is based on the simple Ranking method which is the simplest method of Appraisal under which every employee is compared with the others and ranked from best to worst.
