Which of the Following Statements Is TRUE of Income Segmentation

question 42

Multiple Choice

Which of the following statements is TRUE of income segmentation?

• A) It is usually analyzed in incremental ranges.
• B) It is based on a very quantifiable geographic variable.
• C) Marketers seldom use income as a segmenting approach.
• D) It is time consuming to study consumers' buying habits based on their income.
• E) There is a direct correlation between income and price preferences.

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Definitions:

Preliminary Distribution

An initial allocation or dispersion of assets or dividends before the final calculation or decision has been made.

Partnership Assets

All forms of property, including tangible and intangible items, owned by a partnership entity and used in the operation of its business.

Solvent Partner

A partner in a business who has the ability to pay all their debts.

Deficit Balance

A situation where liabilities exceed assets in accounting, indicating a negative balance.