InBev bought Anheuser Busch. How will this purchase affect InBev's marketing mix?
A. It will only affect the product element of InBev's marketing mix.
B. It will only affect InBev's four Ps--not its marketing mix.
C. It will affect all of InBev's marketing mix elements, either directly or indirectly.
D. It will not affect the promotion or distribution elements of the InBev marketing mix.
E. It will have no affect on InBev's marketing mix.
Answer: C
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A) two-part pricing B) product-line pricing C) captive product pricing D) market pricing skimming E) price discrimination
While considered a form of advocacy advertising, ________ may have no affiliation with a corporate or trade sponsor but may be sponsored by an organization to bring attention to what they consider to be an important cause.
A. positioning ads B. transit ads C. image ads D. issue ads E. direct-response ads
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Indicate whether the statement is true or false
On January 3, 2018, Austin Corp. purchased 25% of the voting common stock of Gainsville Co., paying $2,500,000. Austin decided to use the equity method to account for this investment. At the time of the investment, Gainsville's total stockholders' equity was $8,000,000. Austin gathered the following information about Gainsville's assets and liabilities: Book ValueFair ValueBuildings (10-year life)$400,000 $500,000 Equipment (5-year life) 1,000,000 1,300,000 Franchises (8-year life)$0 $400,000 ?For all other assets and liabilities, book value and fair value were equal. Any excess of cost over fair value was attributed to goodwill, which has not been impaired.?What is the amount of goodwill associated with the investment?
A. $200,000. B. $0. C. $300,000. D. $400,000. E. $500,000.