Yolanda Buys a House in the Mountains for $450,000 Which

question 285

Multiple Choice

Yolanda buys a house in the mountains for $450,000 which she uses as her personal vacation home. She builds an additional room on the house for $40,000. She sells the property for $560,000 and pays $28,000 in commissions and $4,000 in legal fees in connection with the sale. What is the recognized gain or loss on the sale of the house?

• A) $0
• B) $38,000
• C) $70,000
• D) $110,000
• E) None of the above

Identify and explain market segmentation techniques.

Grasp the steps of the consumer decision-making process.

Understand the importance of marketing research for small businesses and its role in responding to competition and changing conditions.

Differentiate between internal and external influences on consumer behavior.

---

Definitions:

Demographics

Statistical data relating to the population and particular groups within it, often used for market research, policy making, and social studies.

Demographics

Statistical data relating to the population and particular groups within it, often used for market research.

Beachhead Market

An initial target market a company focuses on penetrating with its product or service as a strategy for establishing a strong presence.

Early Majority

A category of individuals in the diffusion of innovations theory who adopt new technology or ideas after the innovators and early adopters.