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Scenario 7-3 After Filing for Bankruptcy in 2009 and Requiring Nearly $58

question 5

Multiple Choice

Scenario 7-3
After filing for bankruptcy in 2009 and requiring nearly $58 billion in governmental funding simply to stay afloat, General Motors realized it had to undergo major changes in order to compete with more successful automakers. The company began designing questionnaires and focus groups in order to gain a better understanding of what its cars had been lacking, and perhaps probe for specific improvements consumers may have been looking for. The company recorded its research findings and began to apply them to its product line. A little over a year later, Consumer Reports stated that 83 percent of Chevrolets, GM's top brand, had an average or better score in terms of predicted reliability, an increase from 50 percent the year before. Apparently, the company's efforts have helped turn the company in the right direction.("Consumer Reports: GM Reliability Makes Great Strides." MSNBC.com, October 26, 2010.)
-(Scenario 7-3) Allowing consumers to look at advertisements in a group can be a powerful indicator of their true feelings toward a particular ad. Peer influence can be observed, and hopefully, some level of post-test screening can be done to create increased validity. These elements are characteristic of what kind of studies?

Definitions:

Without Recourse

A phrase indicating that the holder of a financial instrument cannot demand payment from the originator if the instrument fails to pay.

Indorser

A person or entity that signs the back of a negotiable instrument, thereby transferring ownership or guaranteeing payment to another party.

Negotiable

A term that describes the transferable nature of certain documents or instruments, such as checks, which can be legally and freely passed from one party to another.

Holder in Due Course

A party that has acquired a negotiable instrument in good faith, for value, and without notice of any defect, and thus is protected from certain defenses and claims.