Which of the Following Is True of Noncompensatory Rules

question 99

Multiple Choice

Which of the following is true of noncompensatory rules?

• A) They do not have a guideline fixed prior to selection.
• B) They are not used in low-involvement situations.
• C) They allow consumers to simplify their thought processes.
• D) They are most likely to lead to impulsive purchases.

---

Definitions:

Firm Commitment

An agreement between a buyer and an underwriter in which the underwriter guarantees the sale of a certain amount of securities.

Cash Flow Hedge

A hedging strategy used to manage risk associated with variability in cash flows, typically related to interest rates or currency exchange rates.

Inventory Purchase

The process of acquiring goods that a company will sell to customers or use in the production of goods to be sold.

Forward Contract

A financial derivative that represents an agreement to buy or sell an asset at a pre-agreed future point in time at a specified price.