An implicit assumption of the IRR method is that any cash inflows generated in the earlier years can be reinvested at the rate of the IRR
Indicate whether the statement is true or false
TRUE
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Seven-Eleven in Japan's operations and distribution strategy focuses on
A) convenience in the form of easy access to stores. B) constantly adding new products and services. C) low cost for gasoline, which drives traffic to the store. D) being responsive and having an excellent information infrastructure.
Norma has been given the responsibility of determining the advertising appropriation for her firm's newest marketing campaign. At first she thinks that determining the advertising objectives and breaking them into tasks is the best way. However, Norma notices that past sales have been relatively constant, she multiplies the firm's past sales by a standard percentage based on what her firm usually spends on advertising. Norma is using the ________________ approach. The problem of this approach is that it assumes _________________________.
A. objective-and-task; the effort required is minimal B. objective-and-task; advertising creates sales C. percent-of-sales; advertising creates sales D. objective-and-task; sales create advertising E. percent-of-sales; sales create advertising
Tusken Thaw, a shipping industry, plans to expand its customer base to other countries. To facilitate this process, Tusken Thaw seeks financial assistance from Jermino Bank. The bank agrees to lend a specified amount of money; however, it mandates Tusken Thaw to return the amount with interest in a regular schedule of fixed payments. Which of the following sources of long-term funds is being used by Tusken Thaw in the given scenario?
A. A line of credit B. Commercial paper C. Trade credit D. A term loan
The Federal Trade Commission Act allows the FTC to:
A) determine what constitutes deceptive advertising practices. B) prohibit all advertising in certain professions. C) require advertisers to contribute to a fund to reimburse injured consumers. D) require the independent testing of consumer goods.