Scenario 15.1 Use the following to answer the questions.   When introducing a new vehicle targeted to the under-30 population, Toyota used several different methods of communication. First, it did research in several large cities to find out who the opinion leaders were in that age group. By visiting the local nightlife, one or two people in each city were selected and given a new vehicle to drive for two weeks. They were told to share information about this new vehicle with their friends and through social media. After a few weeks, a television campaign was launched with commercials introducing the new vehicle. Toyota also placed ads in magazines that were targeted to the under-30 age group, and used drive-by billboards in the large cities near the nightclub areas. Refer to Scenario

15.1. Suppose that Toyota has decided to contract with the producer of the next James Bond 007 movie to use one of its new vehicles in a chase scene. This would best be an example of

A. sales promotion.
B. word-of-mouth promotion.
C. product placement.
D. viral marketing.
E. publicity.


Answer: C

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Refer to Figure 11.1. Suppose the exchange rate is $.30 per franc. Free-market forces would lead to a(n) ____ of the dollar against the franc and a(n) ____ in U.S. international competitiveness.

a. depreciation, improvement b. depreciation, worsening c. appreciation, improvement d. appreciation, worsening

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For each of the capital budgeting methods listed below, place an X in the correct column, indicating the measurement basis of each, the ability to make comparison among projects, and whether each method reflects or ignores the time value of money. ?Measurement BasisComparison among  projectsTime value of money?CashflowsAccrualincomeAllowscomparisonDifficulttocompare  Reflectstime valueof money  Ignorestime valueof moneyPayback period??????Accounting rate of return??????Net present value??????Internal rate ofreturn??????

What will be an ideal response?

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Which of the following are elements in the cost of carriage?

I. Ways II. Vehicles III. Terminals A) I, II and III B) II and III only C) I and III only D) I and II only

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Larsen Films' is analyzing its cost structure. Its fixed operating costs are $470,000, its variable costs of $2.80 per unit produced, and its products sell for $4.00 per unit. What is the company's breakeven point, i.e., at what unit sales volume would income equal costs?

A. 391,667 B. 411,250 C. 431,813 D. 453,403 E. 476,073

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