Staple Products

question 52

Multiple Choice

Staple products:

• A) need maximum exposure and widespread distribution at low cost.
• B) need adequate representation in major shopping areas.
• C) need widespread distribution but with assurance of preferred display.
• D) need widespread distribution near probable points of use.
• E) can have limited availability as long as display is good.

Grasp the significance of changes in credit terms on a firm's Accounts Receivable Collection Period (ACP).

Recognize the impact of competition and product cost on the length of credit periods offered.

Understand the importance of cash discounts in the decision to offer credit.

Comprehend how changes in credit terms affect the cost of credit for customers.

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Definitions:

Innovation

The process of translating an idea or invention into a good or service that creates value or for which customers will pay.

Secondary Functions

Activities or tasks within an organization that support the primary functions or mission of the business but are not directly involved in the core operational activities.

Strategic

Pertaining to the identification of long-term or overall aims and interests and the means of achieving them, often used in the context of planning and management.

Outsourced

Refers to having contracted a third-party organization to handle certain business functions or services outside the company.