Brand loyalty is considered an asset for the company because : 

1. it helps to reduce costs of marketing. 

2. it enables the company to charge higher prices than competing brands. 

3. it gets support and cooperation from distribution channels.

(b) Status means the position of a person in the hierarchy of an organisation. In this barrier, the superior may pass selected information to his subordinates in order to maintain status difference. This will cause distortion in effective communication. 

(c) Indirect materials are those materials which cannot be directly assigned to the specific product but which can be apportioned. It is used in the factory, office or selling and distribution division. For example: oil lubricants, nails, stationary material, cotton waste etc. 

(d) ‘Selection is a negative process’. Selection is the process of choosing individuals who have the requisite qualifications to fill the jobs. Selection is a negative process because it is process of rejecting many unsuitable candidates to choose the few suitable applicants. The number of candidates rejected are much more than those actually selected. 

(e) Contribution means the right of an insurer who has paid claim under an insurance policy to call upon other insurers to contribute to the payment. The principle of contribution is applicable when the following conditions are satisfied: 

1. insured must be same person 

2. covers the same risk 

3. total amount of compensation under all policies must not exceed the amount of loss.