When Sales Are Made Without the Accompaniment of a Formal

question 32

Multiple Choice

When sales are made without the accompaniment of a formal debt contract,the sales are said to be on:

• A) conditional sale terms.
• B) open account.
• C) trade credit.
• D) sight draft.

Recognize the application of classical conditioning principles in behavior modification.

Understand how to conduct a break-even analysis for a business plan, including the consideration of fixed and variable costs.

Identify and describe common strategies for effectively raising prices in a business context.

Explain the concept of a reference price and the role of a sales force in determining it.

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Definitions:

Aggregate Supply

The total supply of goods and services that firms in a national economy plan on selling during a specific time period.

Aggregate-Demand Curve

A graph that shows the relationship between the overall price level and the total demand for goods and services in an economy.

Money Supply

The total of all monetary assets within an economy at a specific instant, comprising cash, coins, and balances in checking and savings.

Long-Run Aggregate-Supply

is the total supply of goods and services that a country's economy can produce over time when all inputs are used to their full potential.