When the seller promises that a product is good for a particular activity, the seller is implying the warranty of merchantability.

Answer the following statement true (T) or false (F)


False

In this scenario, the seller would be implying a warranty of fitness for a particular purpose.

Business

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Which of the following is not a basic assumption of the wheel of retailing?

a. A large number of price-sensitive shoppers exist. b. Retailers increase operating costs over time to improve their image. c. New institutions are able to reduce operating costs. d. Related-item merchandising increases sales because of one-stop shopping appeals.

Business

State law may mandate that an incontestability clause be included in an insurance policy.

Answer the following statement true (T) or false (F)

Business

Which of the following statements about direct-to-customer channels is FALSE?

A. Most consumer products are sold via direct-to-customer channels. B. Service firms often use direct-to-customer channels. C. Producers must sometimes use direct-to-customer channels because suitable intermediaries are not available. D. Direct marketing does not mean that a firm uses direct-to-customer channels. E. Many business products are sold via direct-to-customer channels.

Business

Use the equation P0 = (K * EPS1 ) /r-g) to demonstrate the relationship between the price-earnings model and the constant growth dividend model

P0 = the current price per share of stock, K = the dividend payout ratio, is the forward looking earnings per share, r is the required rate of return for common stock, and g is the anticipated constant rate of growth.

Business