Joseph A Bank, a Men's Clothing Store, Has Recently Started Advertising

question 16

Multiple Choice

Joseph A. Bank, a men's clothing store, has recently started advertising weekly sales such as "three suits for the price of one," or "get 30% off your first item, 50% off the second, and 70% off the third." This type of advertising might result in consumers thinking the quality is not very good in order to offer such deep discounts. This advertising and promotion serves as a(n) _____ to consumers regarding the quality of the product sold in the store.

• A) signal
• B) cue
• C) determinant attribute
• D) underlying attribute
• E) promotional influence

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Definitions:

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, reflected in the cash flows from financing section of the cash flow statement.

Operating Activities

Activities that are directly related to the day-to-day operations of a company, including sales and expenses.

Net Working Capital

The disparity between an organization's immediate assets and its short-term obligations.

Marketable Securities

Liquid financial instruments that can be quickly converted into cash at their fair market value.