Which of the Following Is True of Business Markets

question 96

Multiple Choice

Which of the following is true of business markets?

• A) The business marketer normally deals with far more but far smaller buyers than the consumer marketer does.
• B) Business markets generally involve far less money and items than do consumer markets.
• C) Business demand is derived demand as it ultimately derives from the demand for consumer goods.
• D) A small percentage decrease in consumer demand can cause a large increase in business demand.
• E) The total demand for business products is much affected by price changes in the short run.

---

Definitions:

Tax Deductible

Expenses that can be subtracted from gross income to reduce the total amount of income on which tax is assessed.

Bankruptcy

A court-managed method enabling individuals or companies that are unable to pay off their debts to pursue reprieve for either a portion or the entirety of what they owe.

Bearer Form

Bond issued without record of the owner’s name; payment is made to whoever holds the bond.

Bond Issue

A bond issue refers to the process by which a borrower, like a corporation or government, issues bonds to raise funds from investors who lend them money for a defined period at a fixed interest rate.