When a Retailer Advertises a Product and Makes It Available

question 199

Multiple Choice

When a retailer advertises a product and makes it available for purchase through telephone or mail orders, the retailer is using

• A) direct selling.
• B) television home shopping.
• C) telemarketing.
• D) automatic vending.
• E) direct-response marketing.

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Definitions:

Receivables Turnover Ratio

An accounting measure utilized to quantify a firm's effectiveness in extending credit and collecting debts on that credit.

Bad Debt Expense

The cost recognized by businesses for accounts receivable that are not expected to be collected.

Inventory Account

An account used to track the value of a company's inventory, including raw materials, work-in-progress, and finished goods.

Average Collection Period

The average amount of time it takes for a company to receive payments owed by its customers.