Which of the Following Statements Is True of Direct Marketing

question 68

Multiple Choice

Which of the following statements is true of direct marketing?

• A) Direct marketing is also referred to as referral marketing.
• B) Salespersons are compensated for other salespeople they recruit.
• C) Direct marketing offers sellers a low-cost alternative for reaching their markets.
• D) Direct marketing involves two or more intermediaries.
• E) In direct marketing, consumers earn a commission every time they buy a product.

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Definitions:

Sales-Type Lease

A lease agreement in which the lessor recognizes immediate profit on the leased asset, as if it were sold, typically used in capital leasing.

Operating Lease

A contract allowing the use of an asset without transferring ownership rights, typically with shorter terms than a finance lease.

Implicit Interest Rate

This reflects the cost of borrowing, calculated from the lease terms, used to measure the present value of lease payments.

Straight-Line Depreciation

A method of allocating an asset’s cost evenly throughout its useful life.