A Company Sells a Mattress, Which Is Claimed to Promote

question 33

Multiple Choice

A company sells a mattress, which is claimed to promote good health.It also convinces customers to become part of a club where they receive commissions if they get other people to join the club or buy mattresses.This is an example of:

• A)bid rigging.
• B)bait-and-switch.
• C)predatory pricing.
• D)referral selling.
• E)pyramid selling.

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Definitions:

Intangible Costs

Costs associated with non-physical assets such as reputation, time, and intellectual property that are not easily quantifiable.

Tangible Costs

Direct expenses that a company can easily measure and account for, such as raw materials, labor, and overhead costs.

Location Decisions

The process of choosing geographical locations for business operations, factoring in costs, convenience, logistics, and strategic objectives.

Location Decision

The process of determining the best place for a business to operate in terms of costs, resources availability, logistics, and market accessibility.