Which of These Statements Is Not True About Business Markets

question 60

Multiple Choice

Which of these statements is not true about business markets?

• A) The purchase may be made to resell the item.
• B) The purchase is always made by more than one individual.
• C) The purchase may be made to use in general daily operations.
• D) The purchase may be made to use in production of another product.
• E) These markets can also be referred to as organizational markets.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its revenues, highlighting the impact of fixed costs on profitability.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit sold contributes to fixed costs and profit.