Why Would a Firm Use ZIP Code Areas as Its

question 18

Multiple Choice

Why would a firm use ZIP code areas as its basic geographic control unit?

• A)Zip code boundaries are clearly marked
• B)There is abundant statistical data available on ZIP code areas
• C)Zip code areas give marketers access to the most densely populated areas
• D)Zip code areas are relatively homogeneous with respect to basic socioeconomic data
• E)Zip code area boundaries change over time

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Definitions:

Liability Insurance Policy

Insurance coverage that protects against claims arising from injuries or damages to other people or property for which the insured is liable.

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, which are recorded as assets until they are actually used.

Adjusting Process

An analysis and updating of the accounts when financial statements are prepared.

Insurance Expense

The cost associated with premiums paid by a company to insure its property, assets, or operations against loss or damage.