Which of the Following Firms Would Be Most Likely to Use

question 207

Multiple Choice

Which of the following firms would be most likely to use a selective distribution strategy for its products?

• A)Newspaper publisher
• B)Maker of name brand men's suits
• C)Super luxury car manufacturer
• D)Maker of snack foods such as potato chips and pretzels

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Definitions:

Sales Discounts

Reductions to the selling price of goods or services, offered to customers to encourage prompt payment or to incentivize bulk purchases.

Accrual Basis

An accounting method where revenue and expenses are recognized when they are earned or incurred, regardless of when cash transactions occur.

Cash Basis

Cash basis accounting is an accounting method where revenue and expenses are recorded only when cash is received or paid, respectively.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.