Weight-Gone offers a guaranteed weight loss of 8 pounds in one week without dieting or exercise. Thousands of customers purchase the products and about 200 call in with complaints that the product was ineffective. What action should Weight-Gone take?
A. It should immediately remove its products from the market, fully refund the thousands of customers' money, and close its business.
B. It should use persuasive techniques to get the 200 disappointed customers to try the product again each time it fails in order to decrease refunds.
C. It should explain to the customers that they misused the product and try to sell them more of the product.
D. It should discuss the product failure with the customers and then provide them with a full refund of their purchase price.
E. It should ignore the customers' complaints and hope they will tire of calling and writing letters.
Answer: D
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In the context of budgeting, a flexible budget:
A. is based on a single assumed level of sales. B. is designed to show the appropriate budgeted level of costs for each different level of sales. C. is the budget that is prepared before a static budget. D. cannot be used by companies for evaluation and comparisons involving real-world sales situations.
All of the following are sources for new product ideas EXCEPT:
A. universities. B. regulators. C. competitors. D. employees. E. suppliers.
Because a franchise can involve the license of a trademark, a trade name, or a copyright, the law governing intellectual property may apply in some situations.
Answer the following statement true (T) or false (F)
The risks of doing business are most likely to be the highest in a country that:
A. has low inflation rates. B. supports high living standards. C. has only one ethnic nationality. D. protects intellectual property. E. faces frequent changes in government and government policy.