ColaBlue,a Soft Drink Manufacturer,is Sued by an Environmental Group for Not

question 35

Multiple Choice

ColaBlue,a soft drink manufacturer,is sued by an environmental group for not meeting certain safety standards in its waste disposal.ColaBlue remedies the problem by adding higher-grade filters and purifiers.Which of the following actions by ColaBlue would constitute a public-relations effort to address the effects of the lawsuit and the consequent damage to its brand image?

• A) having well-trained personnel at retail outlets to explain the different ranges of products the company provides
• B) tying up with local restaurants to promote exclusive sales of ColaBlue soft drinks
• C) lowering prices of ColaBlue's products in the short term
• D) holding a press conference to explain the remedial steps that ColaBlue has taken
• E) making new advertisements for ColaBlue products and sponsoring shows on television

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Definitions:

External Financing

This refers to funds raised from outside the company, including loans, credit, or investments from external entities, to support the company's activities.

Capital Structure

The mix of debt, equity, and other financing methods used by a company to fund its operations and growth.

After-Tax Cost

After-tax cost refers to the expense of a transaction or investment after accounting for the effects of taxes, providing a clearer picture of the true financial impact.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, calculated as the difference between the present value of cash inflows and outflows.