Robyn wants to go into the business of direct merchandise sales. What are the legal problems that Robyn might encounter in telemarketing? In sell-ing door-to-door? In marketing over the Internet? In soliciting sales through the mail?
Telemarketers are the target of many consumer complaints, and must reveal extensive information to comply with state and federal laws. Telemarketers must tell customers that they are receiving a sales call, name the business and products to be sold, state the total cost of the products, and make other disclosures.
Door-to-door salespersons make contracts that buyers may rescind within three days of signing. This federally-mandated "cooling-off" period has an impact on sales.
The Internet is a rapidly growing tool for sales, but Robyn should be aware that it is not unregulated. All laws that apply to more traditional forms of commerce, such as deceptive practice laws, generally apply to Internet commerce.
Finally, direct mail is appropriate for advertisements, but Robyn should know that unso-licited products sent through the mail can be kept by their recipients without ten-dering payment.
In general, Robyn should know that legitimate businesses can and do make proper and profitable use of all these sales methods, but state and federal laws police all of them for fraudulent operators
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Which of the following statements is correct concerning the use of graphics?
a. The use of graphics makes text discussion unnecessary. b. Three or four pages of graphics can effectively convey several hundred pages of text. c. Graphics should be reserved for communicating ideas that are highly quantitative. d. The term "graphics" in business reports refers only to the use of bar charts, line charts, and pie charts.
A company made net sales revenue of $530,000, and cost of goods sold totaled $238,500. Calculate its gross profit percentage
A) 55% B) 45% C) 130% D) 300%
External audits are useful for preliminary control because they
A. are more satisfying as operators benefit by having a more enriched job. B. can assess what a company has done for itself. C. review a company's past, present, and future. D. can evaluate how a company has served its customers of its goods or services. E. can prevent problems from occurring.
Orchard has forecast sales to be $250,000 in February, $270,000 in March, $300,000 in April, and $280,000 in May. The average cost of goods sold is 70% of sales. All sales are made on credit and sales are collected 60% in the month of sale, and 40% the month following. What is the budgeted Accounts Receivable balance on May 31?
A. $168,000 B. $112,000 C. $196,000 D. $117,600