Which of the Following Is Most Likely to Spend Less

question 94

Multiple Choice

Which of the following is most likely to spend less than 1/10 of 1 percent on advertising as a percentage of sales?

• A) A producer of games and toys that sells to retailers.
• B) A company that sells plastics products to manufacturers.
• C) A company that sells women's clothing to retail consumers.
• D) A company that sells perfume and cosmetics to consumers.
• E) A business products company that depends on e-commerce.

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Definitions:

Accumulate Interest

The process by which earned interest is added to the principal, allowing future interest calculations to be based on the increased balance.

Constant Amount

A fixed sum that does not change over a specified period.

Compounded Monthly

A method of calculating the growth of an investment where the interest earned is added to the principal so that the balance doesn't merely grow, it grows at an increasing rate.

Obligation

A duty or commitment to fulfill a requirement, such as repayment of a debt or adherence to a contract.