Reacting to Negative Events Caused by a Company Error, Consumer

question 44

Multiple Choice

Reacting to negative events caused by a company error, consumer grievances, or exaggerated negative press is called:

• A)affirmative social responsibility.
• B)acclaiming.
• C)entitling.
• D)damage control.

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Definitions:

Average Rate of Return

A financial ratio used to measure the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Cash Payback Period

The time period required for the cash inflows from a capital investment project to cover the initial cash outlay.

Net Cash Inflow

The surplus of cash revenues over cash expenses in a given period, indicating the liquidity added to an entity.

Useful Life

The estimated duration for which an asset is expected to be functional and economically feasible for its intended purpose.