Consumer Research Indicates That the Public Is Very Concerned About

question 178

Multiple Choice

Consumer research indicates that the public is very concerned about underage drinking. In response, Texas Brewing Company has created a website providing parents with information to help avoid underage drinking in their families. The firm also provides materials to retailers to help train their employees to avoid sales to minors. Publicizing these efforts:

• A) will likely backfire, since few people will believe a beer company would seriously support a program that would reduce their sales.
• B) represents a key step in a good public relations program.
• C) illustrates a push strategy applied to public relations.
• D) would distract the firm from its primary mission of selling beer to adults.

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Definitions:

Inventory

The raw materials, work-in-process products, and finished goods considered part of a business's assets that are ready or will be ready for sale.

Cash Coverage Ratio

The Cash Coverage Ratio measures a company's ability to cover its debt obligations with its operating cash flow, thus indicating its financial health and liquidity.

Depreciation Expense

The allocated amount of an asset's cost expensed over its useful life to represent wear and tear, obsolescence, or age.

EBIT

Earnings Before Interest and Taxes captures a business's earning power by including all costs except those related to interest and taxes.