The Direct Market Environment

question 272

Multiple Choice

The direct market environment

• A) includes customers, the company, and competitors.
• B) consists of variables that can be controlled.
• C) is broader in scope than the external environment.
• D) includes economic and technological environments.
• E) is made up of the political, legal, and social environments.

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Definitions:

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life in a systematic manner.

Cash Dividend

A payment made by a company out of its profits to shareholders, typically in cash, representing a portion of the earnings allocated to each share of stock.

Stock Dividend

A distribution of additional shares of a company to its shareholders, instead of cash, usually based on a fixed ratio to the existing shares held.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds.