When There Are a Large Number of Potential Customers Scattered

question 32

True/False

When there are a large number of potential customers scattered over a sizable geographic area, a marketer is likely to use personal selling as the key element in the promotional mix.

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Definitions:

Future Value

The future valuation of an asset or cash that has the same worth as a particular sum at present.

Present Value

Today's value of a future financial amount or series of cash disbursements, based on an agreed-upon rate of return.

Discount Rate

The discount rate applied to project the present value of future cash flows from a financial instrument.

Invest

Committing financial resources with the hope of income or profit generation.