While Ethical and Legal Issues Are Associated with All Aspects

question 126

Multiple Choice

While ethical and legal issues are associated with all aspects of marketing, personal selling presents unique issues because

• A)salespeople tend to be unethical.
• B)sales managers are the only people in most sales organizations who worry about ethics.
• C)salespeople interact directly with customers and are, therefore, more visible.
• D)laws regulating personal selling are detailed, complex, and often mistakenly ignored.
• E)customers tend to expect unethical behavior from salespeople.

---

Definitions:

Market Price

The present rate at which a service or asset is available for purchase or sale on the public market.

Dividends

Payments made by a corporation to its shareholder members, typically derived from profits.

Common Stock

A form of corporate equity ownership, a type of security that represents a fraction of ownership in a corporation, giving holders voting rights and a share in the company’s profits.

Dividend Payout Ratio

The fraction of net earnings a firm pays out to its shareholders as dividends, showing the portion of earnings distributed relative to the amount retained.