Which of the Following Takes Place in the Direct Finance

question 164

Multiple Choice

Which of the following takes place in the direct finance market?

• A)Firms borrow funds from banks.
• B)Deposits from savers are accumulated and loans made to borrowers.
• C)Ownership in corporations is sold in the form of preferred stock.
• D)Banks offer savings accounts to customers.

Grasp the significance of branding in packaging and product differentiation.

Understand the role of pricing strategies during different stages of the product life cycle.

Appreciate the importance of creating demand for new products in the market.

Understand the focus of the place element of the marketing mix during the introduction stage of the product life cycle.

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Definitions:

Marginal Cost

The escalation in the entire cost linked to the output of an additional unit.

Average Cost

The cost per unit is determined by dividing the overall production cost by the total units produced.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced.

Total Cost

The sum of fixed and variable costs incurred in producing a given level of output.