MasterCard and Visa May Team Up with University Alumni Associations

question 122

Multiple Choice

MasterCard and Visa may team up with university alumni associations to offer affinity credit cards that typically display an iconic image associated with the university on the card itself and may include an incremental donation program associated with purchases made using the card. The best description of this form of alliance would be a ________.

• A) product alliance
• B) logistics alliance
• C) pricing collaboration
• D) network alliance
• E) promotional alliance

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Definitions:

AAR

Average Annual Return, represents the arithmetic mean of a series of annual returns, offering a straightforward way of understanding an investment's performance over time.

Payback

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Arbitrary Cutoff

A predetermined point or limit that does not necessarily have a logical basis, used in decision-making or analysis.

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated as the present value of future cash flows divided by the initial investment.