For a Product Such as Staples, Which of the Following

question 159

Multiple Choice

For a product such as staples, which of the following determines whether it is a consumer product or a business product?

• A) Quantity purchased
• B) Use of the product
• C) Basic function the product provides
• D) Whether it is purchased for cash or credit
• E) Need satisfied

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Definitions:

MACRS Depreciation

A method of depreciation used for tax purposes in the United States, allowing businesses to recover the cost of an asset over a specified life span through annual deductions.

Incremental Cash Flow

The additional operating cash flow that an organization receives from taking on a new project.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.

Capitalization

The total value of all a company's outstanding shares of stock, representing the company's market value.