What is a characteristic of Indirect Distribution?

Study for the Financial Information Associate Certificate Test with comprehensive questions, hints, and explanations. Prepare effectively and boost your confidence for the exam!

Indirect distribution is characterized by the sourcing of data through third parties. This means that rather than receiving data directly from the original source, organizations obtain it from intermediaries or distributors who compile and relay the information. This method can be advantageous for accessing a wider range of information and leveraging expertise from other entities that specialize in data collection and aggregation. It can also facilitate easier access to complex datasets that might not be as readily available from primary sources.

In contrast, data delivered straight from the source directly refers to direct distribution, where information is collected and provided without intermediaries. The assertion that only raw data is shared relates more to the nature of the data rather than the distribution method itself, and it does not specifically define indirect distribution practices. Lastly, while there may be concerns regarding the reliability of data sourced from third parties compared to direct sources, it isn’t universally true that indirect distribution is less reliable, as the credibility of the third-party source plays a significant role in this aspect.

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