Which of the Following Is True of Noncompensatory Rules

question 88

Multiple Choice

Which of the following is true of noncompensatory rules?

• A) Products with poor performance on one attribute compensate for it by good performance on another attribute.
• B) Any option that does not meet the specifications of consumers is eliminated from consideration.
• C) Noncompensatory rules are used to understand the attributes that guide preferences by having consumers compare products across levels of evaluative criteria.
• D) Consumers usually do not use noncompensatory rules to choose products.

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Definitions:

Company Tax Rate

The rate at which a company is taxed on its profits by the government.

Inventories

The total amount of goods available for sale and raw materials available to produce those goods held by a company.

Subsidiary Entity

A company that is controlled by another company, often referred to as the parent company, through ownership of more than half of the subsidiary's voting stock.

Parent Entity

A business that controls one or more subsidiary companies.