Quality Logos and Corporate Names Should Meet Four Tests

question 129

True/False

Quality logos and corporate names should meet four tests. They should 1) be easily recognizable, 2) elicit a consensual meaning among those in the firm's target market, 3) be familiar, and 4) evoke positive feelings.

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Definitions:

Accounts Receivable

Unpaid customer debts to a company for goods or services that have been supplied.

Bad Debts Expense

An expense reported on the income statement reflecting the cost of estimated uncollectible accounts receivable.

Net Credit Sales

Sales made on credit minus any sales returns or allowances, reflecting the actual credit sales revenue.

Uncollectible Accounts

Debts owed to a company that are considered to be uncollectable and are therefore written off as a bad debt expense.