RST Insurance Company Does Not Have Any Agents

question 27

Multiple Choice

RST Insurance Company does not have any agents.Instead,the company sells insurance through radio ads,telemarketers,and newspaper and magazine inserts.This distribution method is called

• A)reciprocal exchange.
• B)direct response system.
• C)mass merchandising.
• D)multiple distribution system.

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Definitions:

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decline in effectiveness.

Lump-Sum Purchase

A financial transaction where a single payment is made for a group of assets or items instead of buying them individually.

Basket Purchase

The acquisition of a group of assets or products together in a single transaction, often at a bundled price.

Design Fees

Charges levied for the professional service of creating plans, drawings, or layouts for constructions, graphics, interiors, product designs, or other creative works.