Why Is the Demand for Business Products Dependent Ultimately on Individual

question 80

Multiple Choice

Why is the demand for business products dependent ultimately on individual consumers?

• A) Because individual consumers are larger than business customers
• B) Because individuals within organizations purchase for personal consumption and consumers do not
• C) Because business markets consume products in the process of making other products
• D) Because the buyers of business products are the final consumers
• E) Because of the emphasis on personal selling for business products

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Definitions:

Inventory Costing

Methods for assigning costs to inventory and to the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out), impacting financial statements.

Investment Account

An account held by an individual or entity with a financial institution for the purpose of trading, holding, and managing securities and financial assets.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee, but not control or jointly control those policies.

Operating Policies

Guidelines and rules that govern the day-to-day operations of an organization.