Smooth Is a Bar Soap for Women That Is Produced

question 88

Multiple Choice

Smooth is a bar soap for women that is produced by Beautymax Products. Smooth has recently been reformulated because previous product ingredients had become quite expensive. However, the reformulation has caused some major problems, as some 12 percent of the recent consumers have reported developing a rash accompanied by itching and peeling skin. After Beautymax dealt with the negative publicity from the rashes caused by Smooth, the public relations department proposed developing some proactive prevention plans. The vice president argues that such plans are a waste of time and not necessary. Which of the following statements, if true, would not support the public relations department's argument for using proactive prevention crisis management plans?

• A) Proactive prevention crisis management would anticipate problems, such as potential recalls, and have plans in place to deal with them.
• B) Proactive prevention crisis management would prepare plans to deal with emergencies, such as their soap plant catching on fire, and designate a disaster-management center, along with media and employee contact people.
• C) Proactive prevention crisis management would publicize Smooth's connections to the gold-medal-winning women's gymnastics team.
• D) Proactive prevention crisis management would use enhancements to increase desirable outcomes in the public eye by characterizing Smooth as eco-friendly because of the packaging.
• E) Proactive prevention crisis management would protect the company from legal action due to false advertising.

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Definitions:

Discount Period

The discount period is the time frame during which a payment can be made with a discount for early payment according to the terms of a sales agreement.

Operating Expenses

Costs associated with running a business’s core operations on a daily basis, such as rent, utilities, and payroll, excluding the cost of goods sold.

Net Income

Net income, also known as net profit, is the amount of earnings that remain after deducting all costs and expenses from total revenue.

Gross Profit

Represents the difference between a company's revenue from sales and its cost of goods sold, before deducting overhead, payroll, taxation, and interest payments.