What Is a Primary Difference Between Business and Consumer Buyers

question 60

Multiple Choice

What is a primary difference between business and consumer buyers?

• A) Consumer buyers require more product information than business buyers.
• B) Business purchases are made by one individual whereas families make consumer purchases together.
• C) Repeat sales are more common with consumer buyers than business buyers.
• D) Consumers primarily buy inexpensive items; businesses only buy expensive items.
• E) Business buyers generally make larger orders than consumer buyers.

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Definitions:

Depreciable Cost

The total cost of a fixed asset that is allocated to depreciation expense over the asset's useful life, calculated as the asset's cost minus its salvage value.

Straight-Line Rate

A method of calculating depreciation of an asset, which assumes the asset will lose an equal amount of value each year over its useful life.

Annual Straight-Line Depreciation

A method of calculating the depreciation of an asset, spreading its cost evenly over its useful life.

Straight-Line Depreciation Rate

A method of calculating the depreciation of an asset, where the asset's cost is evenly distributed over its useful life.