Which of the following statements is TRUE of the role of advertising in business markets?
A) Advertising is unsuitable for explaining a product's features.
B) Business marketers tend to spend comparatively more on advertising.
C) Business buyers consider advertising inappropriate for reaching them.
D) Advertisements can legitimize the company and introduce its products.
E) Salespeople generate leads through personal selling and use advertising for follow-up.
D
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Which of the following is an incorrect statement regarding the principal-agent relationship in Japan?
A) Agents need not disclose whom they are representing. B) Third parties often require proof that agents are acting on behalf of a particular principal. C) The agent must have expressed authority to act. D) Principals are held liable for acts of agents within their limited range.
In the analysis of profitability, if equity earnings are substantial, it is advisable to:
a. consider them as extraordinary. b. consider them as nonrecurring. c. investigate the earning power of the parent outside of the related investing activities. d. recompute the debt ratio and times interest earned to remove the impact of equity earnings. e. use the DuPont method to lessen the impact of equity earnings.