Which of the Following Statements Is True of Informal Selling

question 21

Multiple Choice

Which of the following statements is true of informal selling as a method of market testing?

• A) The presentations in the informal selling method are for real, and cash sales take place.
• B) The method involves asking customers if they would buy the product rather than directly asking them to buy the product.
• C) The method is ineffective for products sold primarily by salespeople directly to end users.
• D) The techniques used in the informal selling method are not feasible for industrial selling.

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Definitions:

Conservatism

An accounting principle that mandates recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but only recognizing revenues and assets when they are assured of being received.

Patent Amortization Expense

The gradual expensing of the cost associated with a patent over its useful life, reflecting the consumption of the patent's value.

Infringement

The action of violating a law, agreement, or the rights of another, especially intellectual property rights.

Legal Costs

Expenses incurred due to legal services, which may include lawyer fees, court fees, and other related costs.