Identify three types of risk consumers might perceive in the context of purchasing a car
What will be an ideal response?
Consumers might perceive physical risk (an unsafe car poses a safety risk to the physical well-being of the driver and passengers), a financial risk (the car might be overpriced or may decline in value so rapidly that it will have minimal resale value when the consumer tries to resell it), and a functional risk (the car may not perform to the expectations of the consumer). Students may identify other risks, including social, psychological, and time risks.
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OP, an oil and gas exploration company, has decided to adopt an innovative approach to natural gas extraction that will have a less damaging impact on the environment. The idea was first launched by a coop student working in the marketing department who championed the idea when meeting with her department regarding the unit's environmental objectives, the marketing manager raised it with the CFO. The CFO thought the idea sufficiently innovative that he raised it to the CEO. This company is most likely applying the ________ orientation to environmental concerns.
A) compliance with laws and regulations B) comprehensive environmental management C) business sustainable development D) token response E) sustainable development
Which of the boundary-spanning departments shown in Figure 1.5 is most likely to interact with internal as well as external stakeholders, and why do you think so?
What will be an ideal response?
"No Response" (ignoring) is a valid option for companies finding positive comments online
Indicate whether the statement is true or false
Which of the following statements is CORRECT?
A. Historically, the tax code has encouraged companies to pay dividends rather than retain earnings. B. If a company uses the residual dividend model to determine its dividend payments, dividend payout will tend to increase whenever its profitable investment opportunities increase relatively rapidly. C. The more a firm's management believes in the clientele effect, the more likely the firm is to adhere strictly to the residual dividend model. D. Large stock repurchases financed by debt tend to increase expected earnings per share, but they also tend to increase the firm's financial risk. E. A dollar paid out to repurchase stock has the same tax benefit as a dollar paid out in dividends. Thus, both companies and investors should be indifferent between distributing cash through dividends and stock repurchase programs.