Corporations often sell, or exchange for goods and services, various call options on their shares. Which of the following is not true?
a. A call option gives the holder the right to acquire shares of common stock at a fixed or determinable price, called the strike price or exercise price.
b. If the market price of the shares increases above the exercise price, the holder of the option can benefit by exercising the option to purchase shares.
c. The excess of the exercise price over the market price is the option's intrinsic value.
d. Many firms pay part of the compensation of some employees by issuing call options on their own shares referring to these arrangements as employee stock options (ESOs).
e. Firms may also sell or exchange call options for goods and services with counterparties other than employees.
C
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Which of the following is a strategy for a market leader (rather than a market challenger) when marketing a low-involvement product?
A. use Internet search engines such as Google to assist buyers B. use sales promotion such as free samples, coupons, and rebates to encourage trial of their brand C. use repetitive advertising messages that reinforce a consumer's knowledge or assure buyers they made the right choice D. link their brand attributes with high-involvement issues E. use advertising messages that focus on getting the brand into a consumer's consideration set
Looking at the social cognitive theory, ____________ influences our degree of ___________.
What will be an ideal response?
) Which of the following is true of the purpose section in the introduction for a formal report?
A) It informs your readers why or what you hope to achieve. B) It is usually one to three sentences long, or a short paragraph. C) It is a reiteration of the abstract. D) All of the above. E) A and C.
If a manufacturer produces a defective product, sells it to a wholesaler, who sells it to a retailer,
who sells it to a consumer who is injured, which parties in the chain of distribution are potentially liable under strict liability? A) Only the retailer B) Only the party at fault C) Only the manufacturer and wholesaler D) Only the manufacturer E) The manufacturer, wholesaler, and retailer