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Scenario 2-1 As One of the World's Largest Computer and Technology Developers

question 29

Multiple Choice

Scenario 2-1
As one of the world's largest computer and technology developers, Dell, Inc.has never been a stranger to advertising. However, due to a consistent decline in market share, the Texas-based company is looking to overhaul its advertising efforts for the first time in years. In the past, Dell found success promoting its products as some of the top "inexpensive" computer products on the market. However, the company's new ad campaign, which will be targeted towards more high-end users, will make no mention of product price. The company is looking to reinvent its image, and believes the first step in doing so is to revamp its outdated advertising campaign.
-(Scenario 2-1) In recent years, Dell has struggled to compete with companies such as HP and Apple. To generate interest in its new line of computers, Dell hires a company to design a number of contests and incentive programs that will help build excitement for the new line. This company is likely an example of a(n)

Definitions:

Tariffs

Taxes imposed on imported goods and services to increase their price and protect domestic industries.

Interest Rates

The price paid for borrowing money, usually expressed as a percentage rate over a period of one year.

Balance Of Trade

The difference between imports from and exports to another country. If imports are larger a trade deficit exists. If exports are larger there is a trade surplus.

Investing Activities

Transactions and events related to the acquisition and disposal of long-term assets and investments, reported in the cash flow statement.