Which of the Following Statements Is True

question 8

Multiple Choice

Which of the following statements is true?

• A) Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor a push strategy.
• B) Mass communication has cost advantages for firms in consumer goods industries that are trying to sell to a large segment of the market.
• C) Direct selling may be the only way to reach consumers in poor nations with low literacy levels.
• D) Firms that sell industrial products or other complex products favor a pull strategy.

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Definitions:

Acquired Goodwill

Represents the premium paid over the fair market value of assets during the acquisition of a company.

Outstanding Voting Shares

The total number of shares of a corporation that are held by shareholders and eligible to vote at shareholder meetings.

Fair Value

The market value of an asset or liability, based on the current price at which it can be sold or settled.

Unrealized Loss

A loss that results from holding an asset that has decreased in value, but the asset has not yet been sold.