In the Context of the Context of Types of Business

question 56

Multiple Choice

In the context of the context of types of business markets,which of the following statements is true?​

• A)​Business buyers tend to be larger in number than consumer buyers. 
• B)Unlike business buyers, consumer market buyers are trained as purchasing agents.
• C)​Business markets and consumer markets are unrelated to each other.
• D)​Business buyers tend to be smaller in size than consumer buyers.
• E)​The demand for goods and services in the business market is more volatile than that of the consumer market.

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Definitions:

Desired Rate of Return

The minimum percentage return an investor expects to achieve on an investment, influencing the choice of investment.

Straight-Line Depreciation

An approach to distribute the cost of a tangible asset evenly over each year of its expected life.

Fixed Asset

Long-term tangible property or equipment that a firm owns and uses in its operations to generate income, not expected to be consumed or converted into cash within a year.

Cash Payback Method

A capital budgeting technique that estimates the time required to recoup the initial investment in a project, using cash inflows.