Which of the Following Statements Is Most Accurate

question 105

Multiple Choice

Which of the following statements is most accurate?

• A)Nonprofit organizations are exempt from having to cover the costs of producing and/or marketing their products.
• B)Socially responsible corporations should have the pricing constraint of covering all costs of producing and marketing their products,but they should not price their products to earn a profit.
• C)Marketers must ensure that firms in their channels of distribution make an adequate profit or they will be cut off from their customers.
• D)Price elasticity of demand makes it virtually impossible for companies to cover all their marketing and production costs at all times.
• E)Marketing and production costs are the most difficult and expensive aspect of pricing because they draw so much capital away from other departments in the organization.

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Definitions:

Shares Outstanding

Represents the total number of a company's shares that are currently owned by shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Stock Dividend

A dividend payment made to shareholders in the form of additional shares, rather than cash.

Net Income

The total earnings of a company after subtracting all expenses from revenue, including taxes and operating expenses.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's worth.