If cash flow is deemed to be the most important consideration in buying a business, which of the following valuation methods is likely to be used?
a. adjusted tangible assets
b. price/earnings
c. high equity/low debt
d. discounted future earnings
ANSWER: d
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Which of the following is true of on-air tests?
A. They do not enable firms to identify weak commercials. B. They typically require a laboratory setting to measure effectiveness. C. They work well only under controlled, artificial environments. D. They often include a single-source ad research. E. They do not possess the disadvantages associated with field testing.
If Kashi, the maker of Go Lean breakfast cereal, wants to know what percentage of customers examine product labels before making a product selection in the grocery store, it can best gain this information through
A. focus groups. B. mail surveys. C. personal interviews. D. observation. E. mall intercepts.
Which of the following statements is correct? TCP/IP
a. is the basic protocol that permits communication between Internet sites. b. controls Web browsers that access the WWW. c. is the file format used to produce Web pages. d. is a low-level encryption scheme used to secure transmissions in HTTP format.
Heineken beer is sold successfully in the same form around the world. Which of the following product strategies is illustrated in this example?
A) product adaptation B) straight product extension C) product invention D) product augmentation E) communication adaptation