Which of the Following Is an Example of Utilitarian Influence

question 22

Multiple Choice

Which of the following is an example of utilitarian influence?

• A) An individual seeks information about various brands from a professional.
• B) An individual's decision to purchase a particular brand is influenced by the preferences of family members.
• C) An individual feels that the purchase of a particular brand will enhance the image others have of her.
• D) An individual seeks brand-related knowledge and experience from friends, neighbors, colleagues, and relatives who have reliable information about the brand.

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Definitions:

Tax Shield

A deduction allowed by the tax laws that lowers a person's or corporation's taxable income and thus their tax liability.

Incremental Cash Flow

Those cash flows that arise solely from the asset that is being evaluated.

Present Value

The current valuation of upcoming cash flows or a lump sum of money, discounted at an established rate of return.

Sunk Cost

An expense that has already been incurred and cannot be recovered, which should theoretically not influence any future financial decisions or strategies.