When a Marketing Cost Analysis by Territories Shows a Net

question 18

Multiple Choice

When a marketing cost analysis by territories shows a net loss for a territory,which of the following is management likely to do only as a last resort?

• A)Abandon the losing territory.
• B)Reevaluate territorial boundaries.
• C)Use different channels to reach the market in that district.
• D)Increase the advertising appropriation for the district.
• E)Substitute mail or telephone selling instead of some of the personal calls by salespeople.

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Definitions:

Stated Value

A per-share amount set by the board of directors for no-par value stock, which is not determined by market forces.

Revaluation Surplus

An increase in the value of an asset held by a company, recognized in equity, that occurs when the asset's current market value exceeds its previously recorded cost.

Share Capital

The total amount of money raised by a company through the sale of shares to investors.

Share Premium

The amount received by a company over and above the par value of its shares when it issues them to shareholders.