Sales of Intangible Products or Services Such as Insurance Often

question 79

Multiple Choice

Sales of intangible products or services such as insurance often rely heavily on

• A)order processing.
• B)sales promotion.
• C)missionary selling.
• D)creative selling.

Calculate and interpret earnings per share for companies with common and preferred stock.

Understand the concept and implications of retained earnings restrictions.

Recognize the accounting treatments and implications of stock dividends and cash dividends.

Prepare journal entries for dividend declarations and payments.

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Definitions:

Nonprice Competition

Strategies companies use to differentiate their product or service based on features, service, quality, or brand image rather than price.

Economic Profits

The net amount remaining when all costs, both obvious and not, are subtracted from the total income.

Differentiated Products

are goods or services that are distinguishable from each other on the basis of quality, features, or branding, leading to non-price competition among firms.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price, represented graphically as a horizontal line.