Gasoline Is the Only Commonly Purchased Product That Is Priced

question 77

True/False

Gasoline is the only commonly purchased product that is priced down to a fraction of a cent. This is the case because buying gasoline is a low-involvement activity, which makes point-of-purchase factors more important.

---

Definitions:

Distributable Cash Flows

The amount of cash flow available to be distributed to security holders, often used in the context of REITs and master limited partnerships.

Cash Flow Assessment

The evaluation of how well a company generates cash to pay its debt obligations and fund its operating expenses.

Credit Risk

The risk that a borrower will default on any type of debt by failing to make required payments.

Operating Cash Flow

Cash generated from the core business operations of a company, excluding financing and investing activities.