What Is a Typical Procedure for Processing Sales Orders from New

question 44

Multiple Choice

What is a typical procedure for processing sales orders from new customers or customers making a purchase that causes their credit limit to be exceeded?

• A)General authorization to approve the order is given to sales clerks.
• B)Specific authorization must be granted by the credit manager.
• C)The sale should be rejected.
• D)The sales clerk should order a report from a credit bureau before approving the order.

Understand the concept and strategic implications of "fast-second strategy" in competitive markets.

Grasp the inverted-U theory related to industry concentration and R&D expenditures.

Recognize the importance of first-mover advantages, including brand-name recognition and barriers to imitation.

Differentiate between the types of legal protection for innovations and their roles in encouraging R&D.

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Definitions:

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, essentially covering its opportunity costs.

Competitive Firm

A company that operates in a market where there are many buyers and sellers, and no single entity can control the market price of goods or services.

Lowest Price

The minimum price at which a product or service is offered in the market, typically influenced by competition and cost structures.

Competitive Firm

A company that operates in a market where it has to compete with other firms for customers, setting prices based on market demand and supply.