Which of the Following Is True of the Direct Sales

question 28

Multiple Choice

Which of the following is true of the direct sales method of retailing?

• A)It is ineffective in providing detailed information about a product.
• B)It is not suited for marketing products like home appliances and kitchenware.
• C)It is quite expensive,and consumers do not want to pay the higher prices needed to cover the high costs of this method of retailing.
• D)It is the fastest-growing type of retailing and is an alternative to the setting up of virtual stores that incur more costs.

Discern the role of individual integrity and truthfulness in professional ethics.

Identify factors contributing to a company’s social performance evaluation.

Understand the legislation that encourages ethical behavior in organizations.

Recognize the importance of whistleblowing in maintaining ethical standards.

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Definitions:

Inventory Conversion Period

The average time it takes for a company to turn its inventory into sales.

Compensating Balance

A minimum bank account balance that a borrower is required to maintain with a lender as part of a loan agreement, often used to offset the cost of maintaining the loan.

Deficit Financing

The practice of funding government spending by borrowing rather than from taxation, leading to budget deficits.

Interest Charges

The cost incurred by an entity for borrowing funds; these are often calculated as a percentage of the principal amount loaned or the outstanding balance.