Question

14. Which one is not true about circulars?
a Simple and effective tool for communication
b. Costly due to wide circulation
c. Time-saving due to wide reach
d. Usable as a marketing tool​

Answer 1

Answer:

X, Y and Z were sharing profits/losses in the ratio of 4:3:1. Y died ina car accident on 12 June 2021. As per the agreement, on death of a partner, his share of profit is to be calculated on the basis of average profit of last 4 years irrespective of profit or loss in the current year. Source: Ultimate Book of Accountancy X and Z decided to share future profits in the ratio of 3:2. Profits/loss for the last 4 years were as follows:

Answer 2

Costly due to wide circulation is the correct answer.

Explanation:

1. A circular is one of the most efficient and useful sources of marketing as well as information.
2. It is inexpensive as the information can be spread as a message to the masses at one time without incurring heavy expenses.
3. Moreover, it can also be used as a marketing tool because any information can be circulated on a circular notice.
4. It is also a very simple tool for communication because the information is provided in very simple terms on the circular.
5. Therefore B, costly due to wide circulation is the correct answer.