Finance chapter 19 and 20
Logan is taking on additional risks beyond the typical risk associated with dealing with his first distributor. For example, Logan has no control over how well or quickly the new distributor will be able to move his products into the market and thus he runs the risk of not being able to hit his sales targets in time for peak season.
Furthermore, there is also the possibility that this new distributor may not have enough resources or expertise to properly market Logan’s products which could result in lower than expected sales. Additionally, if Logan does not properly vet this new distributor before entering into a contract he could expose himself to legal liabilities such as fraud or misappropriation of funds. Therefore, it is important that Logan takes sufficient time and effort when making decisions about which distributors he should work with in order to minimize any potential risks going forward.