Which of the Following Statements Identifies a Key Advantage of Direct

question 418

Multiple Choice

Which of the following statements identifies a key advantage of direct marketing? Direct marketing:

• A) enables salespeople to close a non-refundable sale in the customer's home or place of work.
• B) allows firms to expand their markets by selling to both ultimate consumers and other marketing intermediaries.
• C) is popular with consumers because it is so convenient to shop from home or work.
• D) creates a strong incentive for salespeople to recruit additional salespeople in order to gain the greatest possible market coverage.

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Definitions:

Short Hedger

An investor who enters into contracts or investment positions to reduce the risk of price decreases in an asset they currently own or plan to own.

Basis

In finance, the difference between the spot price of an asset and the future price, or the inverse, depending on the context.

Long Hedger

A long hedger is an investor or company that enters into a hedge transaction to protect against a rise in the price of an asset in the future.

Short Hedger

A short hedger is an investor or trader who enters into contracts to sell an asset in the future to hedge against the risk of falling prices.