Why Is It Important That Marketers Understand the Classification of the Business

question 146

Multiple Choice

Why is it important that marketers understand the classification of the business product they are selling?

• A)OEM markets often act just like the consumer markets.
• B)Promotion and distribution strategies tend to vary depending upon the classification.
• C)Distribution channels are almost always direct for all business selling.
• D)Raw materials demonstrate extreme flexibility in pricing.

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Definitions:

Depreciation Expense

The systematic allocation of the depreciable amount of an asset over its useful life, representing wear and tear or obsolescence.

Profit on Sale-Leaseback

This refers to the gain a company realizes when it sells an asset and immediately leases it back from the buyer, thus continuing to use the asset without owning it.

Amortization

A process of gradually writing off the initial cost of an asset over a period.