After Beautymax Dealt with the Negative Publicity from the Rashes

question 128

Multiple Choice

After Beautymax dealt with the negative publicity from the rashes caused by Smooth,the public relations department proposed developing some proactive prevention plans.The vice president argues that such plans are a waste of time and not necessary.Which of the following statements,if true,would NOT support the public relations department's argument for using proactive prevention crisis management plans?

• A) Proactive prevention crisis management would anticipate problems, such as potential recalls, and have plans in place to deal with them.
• B) Proactive prevention crisis management would prepare plans to deal with emergencies, such as their soap plant catching on fire, and designate a disaster-management center, along with media and employee contact people.
• C) Proactive prevention crisis management would publicize Smooth's connections to the gold-medal-winning women's gymnastics team.
• D) Proactive prevention crisis management would use enhancements to increase desirable outcomes in the public eye by characterizing Smooth as eco-friendly because of the packaging.
• E) Proactive prevention crisis management would protect the company from legal action due to false advertising.

---

Definitions:

Target Profit

The expected profit levels set by management for a specific period, guiding pricing and sales strategies.

Income Statement

An account documenting an organization's economic activity, showing income, outlays, and net gains or deficits over a distinct timeframe.

Net Operating Income

This refers to a company's income after all operating expenses, but before interest and taxes, are subtracted from total revenue.

Contribution Format

An income statement format that separates fixed costs from variable costs, making it easier to see the contribution margin.