Scenario 13-4 Munters Moisture Control Services Is an Organization That Responds to Responds

question 66

Multiple Choice

Scenario 13-4
Munters Moisture Control Services is an organization that responds to businesses and institutional customers that have had their facilities damaged by moisture from floods or water leaks. In most cases, the moisture problem is completely unexpected by the customer and thus they need to contact Munters and hire them on very short notice. In addition, the cost of clean up and repair of water damage is typically much higher than customers ever expect, unless they have had previous experience with such calamities.
As a result, some customers and even communities view Munters with some disdain. Often, they feel as if this firm is preying on the misfortune of others. Nevertheless, the largest bank in town was very satisfied with the job Munters did for them after a recent flood from the nearby river. Clearly, Munters must be very careful to see that public relations and corporate advertising are handled appropriately.
-(Scenario 13-4) Munters now employs a recently graduated marketing major from the local business school. She studied the Munter's situation in a class on PR. Now she suggests that Munter's shift to a ____ strategy by launching a public relations initiative in advance of the next flood season.

• A) aggressive
• B) proactive
• C) charitable
• D) reactive

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial position.

Prepaid Expense

An expense that has been paid in advance and is recorded as an asset until it is actually incurred.

Unearned Revenue

Unearned revenue refers to payment received for goods or services that have not yet been delivered or rendered. It is recorded as a liability on the balance sheet until the transaction is completed.

Accrued Expense

Expenses that have been incurred but not yet paid for, recognized in the accounting periods they are incurred rather than when cash changes hands.