Which of the Following Statements Is the Primary Reason That

question 53

Multiple Choice

Which of the following statements is the primary reason that explains why businesses moved from the production era to the sales era?

• A)The population was moving away from urban areas.
• B)Advertising was becoming a major marketing force.
• C)Competition grew as the production of goods increased and firms discovered that they could produce more goods than their regular buyers could consume.
• D)There were too many customers to serve.

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Definitions:

Net Income

Net Income is the total earnings of a company after all expenses and taxes have been deducted from revenue.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, often referred to as net assets or equity.

Cost of Capital

The necessary rate of gain a company must obtain from its investments to keep its market price constant and attract financial support.

Project Risk

The potential for losing time, quality, or resources in the pursuit of a project’s objectives.