One Possible Reason as to Why Consumers Respond to Sales

question 251

True/False

One possible reason as to why consumers respond to sales is that by displaying a "high" regular price and a "low" sale price, sales provide consumers with a reference point to interpret the prices being offered.

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Definitions:

Cash Dividends

Distributions of earnings paid to shareholders in the form of cash.

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment to improve its long-term performance and efficiency.

Cash Dividends

Profits paid by a corporation to its shareholders in the form of cash.