Which of the Following Is True of Improving Cost Efficiency

question 24

Multiple Choice

Which of the following is true of improving cost efficiency of the marketing process?

• A)If a business does not make products available at customers' preferred points of purchase,it lowers the cost of the transaction.
• B)For undifferentiated products,customers' transaction costs are high even when availability is unrestricted.
• C)The more undifferentiated a product is,the greater its perceived value.
• D)Customer value can be increased by lowering the cost of reaching customers.
• E)The general assumption is that the more intermediaries a channel system has,the lower the total cost of purchase.

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Definitions:

Small Corporations

Businesses typically characterized by a limited number of shareholders, assets, and revenues, and may qualify for certain tax benefits and simpler regulations.

Gross Receipts

The total amount received from all sources before any deductions or allowances, used as a measure of business size or taxation.

AMT Rate

The percentage at which the Alternative Minimum Tax is levied on income, designed to ensure that individuals pay a minimum amount of tax.

Subchapter S Corporation

A form of corporation that meets specific Internal Revenue Code requirements, offering the benefits of incorporated status while being taxed as a partnership.