Which of the Following Statements Is True of Lifestyle Segmentation

question 51

Multiple Choice

Which of the following statements is true of lifestyle segmentation?

• A) It divides people into groups based on their traits,attitudes,and habits.
• B) It divides a market by the amount of product bought or consumed.
• C) It divides people into market segments according to the benefits they seek from a product.
• D) It divides people into groups based on socioeconomic characteristics such as income and education.

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Definitions:

Tax Shield

The reduction in income taxes that results from taking an allowable deduction from taxable income, such as interest on debt.

Capital Structure

The mix of debt and equity financing a company uses to fund its operations and growth.

M&M Proposition II

Modigliani and Miller's Proposition II states that a company's cost of equity increases as it increases its leverage due to the risk premium on equity.

Debt-Equity Ratio

A financial ratio that measures the relative proportion of shareholders' equity and debt used to finance a company's assets.