Hank Operates a Plumbing and Electrical Supply Store

question 128

Multiple Choice

Hank operates a plumbing and electrical supply store.He has categorized its business customers by their purchasing strategy.Hank has found it much easier to serve and satisfy the _____,who usually recontact familiar suppliers and place an order immediately if product and delivery requirements are acceptable.

• A) adopters
• B) adapters
• C) optimizers
• D) innovators
• E) satisficers

---

Definitions:

Resale Value

The estimated market value of an asset at the end of its useful life or lease term.

Depreciation Tax Shield

The reduction in income tax expense that results from the depreciation expense on capital assets, allowing companies to save money on taxes.

Marginal Tax Rates

The rate of tax applied to the last dollar of income, which can vary depending on the income level and filing status of an individual or entity.

Straight-Line

A method of calculating depreciation of an asset, where its cost is evenly spread over its useful life.