TransWave International Is a Small Company That Has Developed a System

question 111

Multiple Choice

TransWave International is a small company that has developed a system that uses the web and patented electronic sensors as an early-warning device for pipeline leaks. Pipeline safety is becoming a big issue in North America as more natural gas lines are being laid near populous centers. The timing is right for this company to be extremely successful, but it must make itself known to oil companies. One method it used was an article about the company in Business 2.0 magazine. This article described the
Company, what its product could do, and why the product was needed. The article was an example of:

• A)reminder advertising.
• B)publicity.
• C)institutional advertising.
• D)a sales promotion.

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Definitions:

Pension Asset

Refers to the resources set aside by a company in a pension fund to meet future pension liabilities to its employees.

Projected Benefit Obligation

A measurement of the present value of future pension benefits earned to date as estimated by actuaries, used in accounting for pension plans.

Balance Sheet

A report detailing a company's assets, obligations, and the equity of its shareholders at a particular moment.

Projected Benefit Obligation

An actuarial estimate of the total present value of future retirement benefits earned to date, adjusted for expected future salary increases.