By Making a Product That Customers Can Take Pride in Having

question 171

Multiple Choice

By making a product that customers can take pride in having, production creates

• A) resale value utility.
• B) form utility.
• C) time utility.
• D) operational utility.
• E) ownership utility.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividend payments.

Common Equity

The amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debt was paid off.

Pre-Tax Basis

An evaluation or measure made before taxes are deducted.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.