Assessment of Skills and Knowledge(ASK) in Fundamental Marketing Concepts Practice Test

Which conditions are covered by terms-of-sale selling policies?

1. Credit, delivery, and discounts

2. Installation and maintenance

3. Discounts, guarantees, and returns

4. Customer entertainment and prospecting

The correct answer is: Credit, delivery, and discounts

The correct choice is related to the terms-of-sale selling policies, which set forth the conditions under which goods or services are exchanged between a buyer and a seller. These policies typically cover key elements such as credit—specifying payment terms or the possibility of financing; delivery—detailing how and when products will be shipped or services will be rendered; and discounts that may be offered to incentivize purchases or as part of promotional strategies. These components are essential for providing clarity and ensuring that both parties understand the conditions of the transaction, thus promoting a smoother business relationship. Policies around credit can help manage risk for sellers while facilitating purchases for buyers, delivery terms enhance customer satisfaction through timely fulfillment, and discounts can motivate purchases or foster loyalty. In contrast, other options encompass terms or services that, while important in a business context, do not directly relate to the basic conditions of sale. Installation and maintenance pertain to after-sale services rather than the sale terms themselves. Discounts, guarantees, and returns could be partially relevant but do not cover the full spectrum of the typical conditions of sale as comprehensively as credit, delivery, and discounts collectively emphasize. Customer entertainment and prospecting are more geared toward marketing tactics rather than the transactional terms involved in selling policies.