In using the variable cost concept of applying the cost-plus approach to product pricing, fixed manufacturing costs and fixed selling and administrative expenses must be covered by the markup
Indicate whether the statement is true or false
True
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Which of the following is true of source derogation?
A. They are considered to be a useful tool for measuring consumer loyalty. B. They enhance brand recognition. C. They are positive thoughts about the spokesperson in an ad. D. They are one of the least important types of emotional responses to an ad. E. They generally lead to a reduction in message acceptance.
The person who signs a note receivable and promises to pay the principal and interest is the:
A. Maker. B. Holder. C. Owner. D. Receiver. E. Payee.
The legal doctrine of strict product liability is controversial because it unfairly holds a business accountable for paying damages in cases where it was not at fault.
Answer the following statement true (T) or false (F)
A Miami restaurant has created atmosphere through its subtle use of blue and green lighting, ceiling fans over each table, and frozen drinks. If its electrical energy supplier raises its prices, the restaurant will most likely ________
A) continue its present operation because it has an elastic demand for electricity B) ask other Miami restaurants to create a derived demand for cheaper electricity C) decide to find other ways to use electricity D) continue its present operation because it has an inelastic demand for electricity E) remove its lighting, turn off its fans, and economize on its use of electricity