Which of the following statements is correct?
A)Both cash and noncash gift-giving cause value losses.
B)Neither cash nor noncash gift-giving causes value losses.
C)Noncash gift-giving creates a value loss, but cash gifts do not.
D)Cash gifts create a value loss, but noncash gifts do not.

Question

Quizplus · Accepted Answer

Noncash gift-giving often results in a value loss because the giver may choose a gift that the recipient does not value as much as its cost, whereas cash gifts allow recipients to purchase something of equivalent value to the cash, thus avoiding value loss.

Which of the Following Statements Is Correct