Which of the Following Statements Is NOT True

question 116

Multiple Choice

Which of the following statements is NOT true?

• A) Self-promotion is not a substitute for quality products.
• B) Inferior products harm a firm's profitability and a nation's balance of payments.
• C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
• D) Quality-be it good or bad-will show up in perceptions about a firm's new products, employment practices, and supplier relations.
• E) Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.

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Definitions:

Coercive Power

Power that is derived from the ability to punish or penalize others, often used as a means to achieve compliance or control.

Reward Power

The capacity to influence others by providing or withholding desired outcomes.

Information Power

A form of power that comes from access to, control over, and distribution of information.

Legitimate Power

The authority that a person possesses as a result of their position in an organization's hierarchy.