Which of the Following Statements About a Typical Sales-Oriented Business

question 79

Multiple Choice

Which of the following statements about a typical sales-oriented business is TRUE?

• A) The company develops its products to meet the needs of specific groups of people.
• B) The primary goal of the company is profit through customer satisfaction.
• C) The company invests the majority of its resources in promoting its products and services.
• D) The company is in business to satisfy customer wants and needs and deliver superior value.
• E) All of these statements about a typical sales-oriented business are true.

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Definitions:

Transfer Price

The price at which goods, services or intangible properties are traded between related entities within an organization.

Buying Division

A department within a company responsible for making purchases of goods and services needed by the organization.

Selling Division

A segment of a company specifically focused on sales and distribution of products or services.

Transfer Price

The price at which divisions of a company transact with each other, used for the transfer of goods and services within an organization.