A Salesperson Can Minimize Exposure to Costly Misrepresentation and Breach

question 70

Multiple Choice

A salesperson can minimize exposure to costly misrepresentation and breach of warranty lawsuits if the salesperson:

• A) never negotiates.
• B) avoids win-win sales situations.
• C) never sells customers more than they want.
• D) thoroughly educates customers before making a sale.
• E) offers opinions when customers ask what results to expect from a product.

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Definitions:

Amortized

Amortization involves spreading payments over multiple periods, such as loans or intangible assets, to reduce the balance over time.

Journal Entries

The means by which all business transactions are recorded in the accounting records using the double-entry bookkeeping system.

Income Statement

A financial statement showing a company's revenues, expenses, and profit or loss over a specific period.

Cost of Goods Sold

Expenses directly incurred from the creation of a company's sold goods, involving labor and materials.