The Quick Heat Company Sells All Sorts of Standalone Fires

question 10

Multiple Choice

The Quick Heat Company sells all sorts of standalone fires (e.g. paraffin heaters and electric fan heaters) . Most of their customers are businesses who have a short term problem such as a heating breakdown. In order to increase sales, they have decided to try and persuade people who live in rented accommodation, and who may want to increase the warmth of their homes without investing in the property, to buy these fires. Who is the primary target market for this campaign?

• A) Landlords of rented property
• B) Business owners
• C) People who live in rented accommodation
• D) Heating engineers
• E) Homeowners

---

Definitions:

Expected Return

The weighted average of all possible returns of an investment, considering all risks and the likelihood of each outcome.

Well-diversified Portfolio

An investment portfolio with a mix of assets designed to reduce exposure to risk by spreading investments across various sectors or asset classes.

Price of Money

Often refers to the interest rate, reflecting the cost of borrowing money or the return on savings, generally influenced by inflation, supply and demand for credit, and monetary policy.

Anticipated Inflation

Expected inflation, the general rise in prices forecasted by consumers, businesses, and investors, affecting economic decisions.