Which of the Following Statements About Business Buying Is False

question 151

Multiple Choice

Which of the following statements about business buying is false?

• A) Business marketers prefer not to sell to customers who place small orders.
• B) Business marketers must often sell their products in large quantities to make profits.
• C) Most business purchases are made by committee.
• D) Business purchases are usually made on the basis of contracts.
• E) Orders in business markets tend to be smaller than those placed in consumer markets.

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Definitions:

Unrecognized Net Gain

A profit that has been realized but not yet recorded in the financial statements of a company.

Projected Benefit Obligation

The present value of estimated future pension benefits owed to employees, based on expected salary increases.

Prior Service Cost

Costs that arise when a pension plan is amended to increase benefits for employee service provided in prior periods, recognized over the service periods of affected employees.

Unrecognized Prior Service Cost

Costs associated with retroactive benefits granted in pension plans, which are not immediately recognized as an expense but are amortized over time.