Which of the Following Is a Major Drawback to the Use

question 12

Multiple Choice

Which of the following is a major drawback to the use of personal selling?

• A) Its low frequency and reach
• B) Its high per-customer costs
• C) Its inability to convey large amounts of information
• D) Its ineffectiveness as a motivator
• E) Its ineffectiveness to build brand value

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Definitions:

Terms 2/10, N/30

Payment terms indicating that a buyer can take a 2% discount if the bill is paid within 10 days, with the net amount due in 30 days.

Net Method

An accounting technique where discounts for early payment are assumed to be taken, reducing the amount recorded as accounts receivable.

Periodic Inventory System

An inventory valuation method where the inventory count and cost of goods sold is determined at the end of the accounting period.

Terms 4/15, N/60

A commercial credit term indicating that a 4% discount is available if paid within 15 days, with the net (full) amount due within 60 days.