In Terms of External Measures,which of the Following Statements Is

question 15

Multiple Choice

In terms of external measures,which of the following statements is TRUE?

• A) A company can evaluate relationships on a relative basis against external norms provided by consulting companies
• B) Comparing sales and market penetration rates between agents in similar creates dissonance in agency relationships
• C) Although agencies are autonomous businesses and are paid a standard commission on sales, most do not participate in manufacturer training programs
• D) They cannot be used to critically evaluate the direction of sustained business relationships
• E) They are unable to compare relationships based on an external standard or profile derived from other relationships

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Definitions:

Plant Assets

Long-term tangible assets used in the operations of a business that are not intended for resale.

Expenditures

Outflows of cash or other valuable assets from a person or company to pay for goods or services.

Encumbrances

Claims, liens, or charges on property or funds that affect or limit their use until the encumbrance is lifted.

Accounts Payable

Liabilities to creditors that are short-term financial obligations arising from purchasing goods or services on credit.