The American Red Cross Creates Advertisements to Encourage People to Donate

question 195

Multiple Choice

The American Red Cross creates advertisements to encourage people to donate blood. After viewing one, Amanda Cho decided to donate a pint of blood. After she did, Amanda Cho felt happy that she had performed a good deed. Did an exchange occur in a marketing sense?

• A) Yes, because the blood was donated to the Red Cross based on an advertisement, a marketing activity.
• B) Yes, because the donated blood was exchanged for a feeling of satisfaction.
• C) No, because the Red Cross is a nonprofit organization.
• D) No, because no money changed hands.
• E) No, because the Red Cross, a service organization, did not provide Amanda Cho with a product.

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Definitions:

Partial

Pertaining to something that is not whole or complete, often used in financial contexts to describe payments, completion of tasks, or fulfillment of obligations that are not entirely settled.

Temporary Difference

A difference between the book value of an asset or liability and its tax value that results in taxable or deductible amounts in future years.

Pretax Financial Income

Pretax Financial Income is the amount of income earned by a company before taxes are deducted, as reported in its financial statements.