Why Would a Business Firm Want to Have Controlling Sales

question 225

Multiple Choice

Why would a business firm want to have controlling sales volume as a promotional objective?

• A) A company will aggressively push its products through wholesalers and retailers who persuade customers to buy it.
• B) The production and distribution systems will run more smoothly when the firm achieves a more stable sales volume during the year.
• C) The company is trying to appeal to a specific segment of the market.
• D) Consumers are more likely to purchase a product when they have been informed about it.
• E) The company wants to be able to communicate information to consumers when it is more economical to do so.

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Definitions:

Dividend Growth Model

A method for determining the value of a stock by using predicted dividends and discounting them back to their present value.

Cost Of Equity

The return that equity investors require on their investment in the firm.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Subjective Approach

An approach to making decisions or assessments that relies on individual preferences, emotions, or thoughts, instead of objective data or proof.