A Reference Value

question 35

Multiple Choice

A reference value

• A)is relative to the amount of time and energy a consumer puts into the purchase process.
• B)is based upon the value assigned to similar items used by the consumer's peers.
• C)results from performing a careful break-even analysis.
• D)involves comparing the costs and benefits of substitute items.
• E)is based upon the differential between customers' "needs" and "wants."

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Definitions:

Cumulative Preferred

A type of preferred stock where dividends accumulate if not paid in a given period and must be paid out before any dividends can be distributed to common stockholders.

Dividends in Arrears

Dividends owed on cumulative preferred stock that require payment prior to distributing any dividends to holders of common stock.

Par Value

The nominal or face value of a bond, or stock, as stated by the issuing company.

Treasury Stock

Shares that were issued and subsequently reacquired by the company. They are held in the company’s treasury and can be reissued or retired.