The First Step in Estimating Demand Is to Understand What

question 145

Multiple Choice

The first step in estimating demand is to understand what affects price sensitivity.Generally speaking,customers are most price sensitive to products that cost a lot or are ________.

• A) priced low to begin with
• B) low cost
• C) bought frequently
• D) bought infrequently
• E) none of the above

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Definitions:

Current Liabilities

Current liabilities are a company's debts or obligations that are due within one year.

Liquidity

Refers to how quickly an asset can be converted to cash. Liquid assets can be converted to cash quickly, whereas illiquid assets cannot.

Operating Cycle

The period of time it takes for a business to purchase inventory, sell products, and receive cash from sales.

Average Payment Period

The average amount of time it takes a company to pay off its accounts payable.