For a Product Such as Staples, Which of the Following

question 159

Multiple Choice

For a product such as staples, which of the following determines whether it is a consumer product or a business product?

• A) Quantity purchased
• B) Use of the product
• C) Basic function the product provides
• D) Whether it is purchased for cash or credit
• E) Need satisfied

---

Definitions:

Dividend Reinvestment Program

A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.

Transaction Costs

Expenses incurred when buying or selling goods and services, including fees, taxes, and other charges.

Residual Dividend Policy

A strategy where dividends are based on earnings minus funds the firm retains to finance the equity portion of its investment and working capital requirements.

Special Dividend

A one-time distribution of earnings to shareholders, oftentimes an indication of excess cash the company wants to return.